Nancy Pelosi has a plan for additional stimulus, and center piece is reversing a tax change that overwhelmingly applies to households making over $¼ million a year.
I get that a the the limit on the state and local tax deduction (SALT) rankles, because it applies more to states with higher incomes (Generally blue) and higher taxes (Almost always blue), and that it impacts the silicon valley, and her hyper-expensive to live in district more heavily, but seriously, you can do better than this:
As lawmakers prepare for another round of fiscal stimulus to address economic fallout from the coronavirus pandemic, Speaker Nancy Pelosi suggested the next package include a retroactive rollback of a tax change that hurt high earners in states like New York and California.
A full rollback of the limit on the state and local tax deduction, or SALT, would provide a quick cash infusion in the form of increased tax rebates to an estimated 13 million American households — nearly all of which earn at least $100,000 a year.
………
The congressional Joint Committee on Taxation estimated last year that a full repeal of the SALT limit for 2019 alone would reduce federal revenues by about $77 billion. Americans earning $1 million a year or more would collectively reap $40 billion of those benefits. Most of the rest would go to households earning $200,000 or more.
For the people targeted by this, and let’s be clear, this was a deliberate targeting by the GOP of people that they see as Democrats, are inconvenienced by this.
People further down the food chain are facing homeless, bankruptcy, and death as a result of the current crisis.
(Update)
For those of you who want perspective, median household income in the US was $61,937in 2018 , in San Francisco in 2018 it was $112,376, and in Manhattan it was $82,459.
(as an aside, SF’s number is a real WTF)
Also, here is the numbers from the Ways & Means committee report in 2019, meaning that this was done under Chairman Richard Neal (D-MA):
5% accrues to families making less than $200,000/year, and ½% accrues to families making less than $100,000/year.