Democrats say cutting hundreds of billions of dollars in taxes for mostly wealthy income-earners in coastal states is “essential” to getting reelected in this year’s midterm elections.
In November, House Democrats passed President Joe Biden’s “Build Back Better Act” which includes billions in tax breaks to the wealthiest residents of blue states. Specifically, the plan would give a tax cut to about 67 percent of the nation’s richest Americans — those earning more than $885,000 every year — costing taxpayers about $625 billion.
Under Biden’s plan, those in the top one percent would receive an average tax cut of more than $16,000 this year. The tax cuts for the wealthy would be a result of the plan’s increasing the State and Local Tax (SALT) deduction