Helping the rich

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The dubiously named “Build Back Better” or BBB legislation, passed by the House this month calls for buyers of electric cars, or EVs, to get up to $12,500 in tax credits. And a couple can make half a million bucks a year and still qualify. Qualifying vehicles can cost up to $80,000.

That is, of course, if the legislation passes the Senate.

It’s difficult not to look at this proposal cynically.

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The EV subsidy is not the only way BBB would help the rich. The bill also includes a big tax cut for the wealthy.

Specifically, it raises the cap on deducting state and local taxes (SALT) on your federal return from $10,000 to $72,500, then gradually to $80,000.

The provision would cost the federal government $285 billion in revenue. And according to the Washington Post, if it passes the Senate it will be “more costly than establishing a paid family and medical leave program, and nearly twice as expensive as funding home-medical services for the elderly and disabled.”

The New York post cited the “left-leaning Institute on Taxation and Economic Policy” to report that “85 percent of the SALT benefits flow to the top 5 percent of taxpayers, mainly in New York, California and other high-tax states. Meanwhile, reports the Tax Policy Center, the bill would hike taxes modestly on up to a third of middle-income earners.”

Newsweek, a left-of-center outlet, ran an opinion piece by Brad Polumbo of the Foundation for Economic Education, who wrote, “The Democrats are attempting to spin this as ‘middle class tax relief,’ but it actually almost exclusively benefits the rich.”

He added, “[W]hat makes this Democratic hypocrisy so sinister is that, as written, the plan currently cuts taxes for the rich while burdening millions [of] working-and-middle class Americans with new taxes. President Biden repeatedly promised not to raise taxes on anyone earning less than $400,000. But the Build Back Better plan nonetheless includes billions in new taxes, such as increased taxes on nicotine products, hitting smokers — a group that’s disproportionately poor and racially diverse.”

He concluded, “President Biden and his Democratic allies claim their multi-trillion-dollar spending agenda is about revitalizing the working class. But a closer look into the details of the plan they just passed reveals that it [expletive deleted] over working-class taxpayers — while funneling corrupt tax carve-outs to rich Democratic constituents.”

So much for looking out for the little guy.

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Rep. Alexandria Ocasio-Cortez, D-New York, is the November 2021 Porker of the Month.
Citizens Against Government Waste (CAGW) singled out the “Squad” member “for pressuring President Joe Biden to cancel student loan debt.”

As CAGW President Tom Schatz said, “Canceling student loans would be unfair to everyone who paid off their loans and everyone who never went to college. Americans who have paid off their own student loans and worked hard to pay for their own or their children’s college education should not be forced to pay again for others to attend college debt-free.”

Contact Bart Adams at badams@mydailyrecord.com.

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