The Committee for a Responsible Federal Budget released a new analysis that shows the filibuster-proof reconciliation package will hand out a tax cut to 2/3 of the top 1% of wage earners even while the top 1% has more wealth than the entire middle class.
The Democrats constantly say they want “the rich to pay their fair share” when they play their class warfare games. They say it ad nauseum.
“This is true despite the fact that Build Back Better would raise taxes substantially for the extremely rich (mainly those making over $10 million per year),” the analysis states.
Here’s what’s going on that the CNNs and MSNBCs won’t tell you. Years ago, the Democrats created programs that allowed rich people who lived in progressive blue states to write off their State and Local Taxes, known as SALT, from their federal tax returns. States run by progressive Democrats have no ideas on how to make their people’s lives better. So, what they do to keep getting elected is they create these expensive state social programs in a quid pro quo like agreement that you vote for us and we’ll keep handing you goodies.
The problem for these progressive states has been that progressive spending programs cost money. Lots of money. So they raise the state income tax rates through the roof in order to pay for the pay-for-play programs.
The income tax rate for Pennsylvania wage earners is 3.07%. So, three percent of your earnings go to the state of Pennsylvania.
However, the top income tax rate for New York earners is 10.9%. Can you imagine giving 11% of your earnings to the state of New York? If you’re a rich guy, you know you’re not taking advantage of all the goodies programs the progressives in Albany are putting together and it makes you think about moving to a better state that doesn’t tax you to hell.
New Jersey’s progressive top income tax rate is 10.7%. Bordering Pennsylvania, it makes you wonder what’s so much better in New Jersey that they have to charge three times as much in income taxes. The answer is nothing. They have progressive politicians who create giant social welfare programs that keep people voting for them that cost a lot of money.
Another progressive state, California, has a top income tax rate of 12.3%. Can you imagine paying nearly twelve and a half percent of your earnings to support an army of homeless people who line your streets with tent parks, leaving trash and needles strewn about everywhere?
Okay, so the rich in progressive states started complaining to their elected representatives. These are the people who have a voice in the halls of state capitols. Their businesses bring in a lot of state tax revenues and so the progressives don’t want to piss them off.
So, the Democrats in states convinced the Democrats in DC to create deduction policies that allow progressive states’ rich people, who are supposed to be paying their fair share, write off their high progressive income taxes from their federal income taxes.
Well, that’s not fair. The federal government is not about to spend less money because progressive rich Democrats in blue states want to write off their state taxes from their federal taxes. That means working-class and middle-class workers in all 50 states have to subsidize the progressive rich people in blue states by making up the difference from the SALT deductions.
President Donald Trump knew it wasn’t fair, and he got rid of the SALT deduction cap. Democrats hated him for it, because it caused the rich progressives in their states to start to have to pay their fair share with no write offs from their federal taxes. This caused a lot of rich people to leave states like New York, California, and others and move to states that either had low income tax rates or no income tax at all like Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washing, and Wyoming. Those states seem to be doing fine without a state income tax.
Biden’s BBB plan will bring the SALT deduction back to give tax cuts to the rich. For example, according to BBB, the top 1% wage earners will receive an average tax cut of over $16,000 in 2022.
This little Biden scam will give a $625 billion tax cut to the wealthiest Americans, who are mostly living in progressive blue states.
When you look at the chart above, you see that Biden’s BBB plan gives more money in tax cuts for the wealthiest Americans than anyone else.
As Joe Biden stands there trying to justify his tax increases, saying that the rich need to pay their fair share, the very bill he’s pushing to do that is giving the largest tax cut to the wealthiest individuals who mostly live in blue states. “HELLO? Hello, fairness? Where are you?”
Meanwhile, Biden’s plan will take an additional $200 billion from working and middle-class earners via increased IRS audits. Isn’t that great news for the wealthiest Americans?
Rich is a conservative, syndicated opinion writer and owner of MAGA-Chat.com. He writes about politics, culture, liberty, and faith.
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