[Congressional Record Volume 167, Number 207 (Wednesday, December 1, 2021)]
[House]
[Page H6716]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TOO MUCH SALT IN WASHINGTON'S DIET
The SPEAKER pro tempore. The Chair recognizes the gentlewoman from
North Carolina (Ms. Foxx) for 5 minutes.
Ms. FOXX. Mr. Speaker, middle- and lower-income households across the
country are getting the short end of the stick under the so-called
Build Back Better Act.
For months, House Republicans have exposed radical provisions in this
bill that do nothing to help the American people or the country. One
such provision is the raising of State and local tax deductions,
commonly referred to as SALT.
Under the Tax Cuts and Jobs Act, a $10,000 cap was placed on SALT
deductions. This meant that taxpayers who itemized their returns could
deduct up to $10,000 in certain taxes that are paid to State and local
governments.
Under the so-called Build Back Better Act, the cap would be set at
$80,000. That is a $70,000 increase in tax deductions for high-income
households in America. The Committee for a Responsible Federal Budget
estimates that raising the SALT cap to $80,000 equates to a gift of
$625 billion in perpetuity to wealthy Americans.
Speaker Pelosi was quoted as saying that raising SALT deductions is
``about which States get the revenue they need in order to meet the
needs of the people.''
Mr. Speaker, that claim may sound appeasing to some, but not all
Members of the Democrat Party are sold. Jason Furman, the former chair
of former President Obama's Council of Economic Advisers and current
Harvard economist, calls this giveaway obscene.
Representative Jared Golden, a Democrat from Maine, who voted against
the so-called Build Back Better Act, said he was concerned about tax
giveaways to millionaires. Even Senator Bernie Sanders came out in
staunch opposition to these proposed changes for the SALT cap. Noticing
a pattern here?
Consider who will be the people reaping these benefits. Here is a
hint: it is not hardworking American families. With the tax deduction
cap set at $80,000, the households with the highest income would be
saving $25,900 more than they do under the current law.
The Tax Policy Center found that this $80,000 cap would directly
benefit the top 1 percent of households. Middle- and lower-income
households will be left behind. With only 5.4 percent of the households
earning more than $200,000 per year in North Carolina, few people would
receive this handout.
Higher-income States such as California, New York, and New Jersey
have historically benefitted from SALT cap deductions--with North
Carolina being far removed from the conversation.
Mr. Speaker, economic experts, Republicans, and even Democrat Members
of Congress agree that Washington has too much SALT in its diet. If the
majority believes upping SALT deductions and leaving both middle- and
lower-income Americans behind is a viable route to take, the
consequences would be a lot more than they bargained for.
The Senate should kill the so-called Build Back Better Act
immediately.
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