‘The rest of the country has been subsidizing these high tax states forever, and what we did two years ago with tax reform was balance that across the country…’
(Joshua Paladino, Liberty Headlines) Sen. David Perdue, R-Ga., exposed the “hypocritical” plan by Senate Minority Leader Chuck Schumer, D-NY, to cut taxes for his ultra-rich New York constituents, despite Schumer’s progressive rhetoric about the wealthy paying their fair share.
On Fox Business Network’s “Sunday Mornings with Maria,” Perdue said Schumer had forced a vote to allow high state and local tax deductions (SALT). These deductions would apply almost exclusively to the top 20 percent of income earners.
“This so-called ‘state and local tax deduction’ would be a tax cut for the top earners in New York, California and Illinois,” Perdue said.
“The rest of the country has been subsidizing these high tax states forever, and what we did two years ago with tax reform was balance that across the country,” Perdue said. “The regulatory work and tax bill together have created the best economic turnaround in U.S. history. Now, Chuck Schumer wants to go back and give money to richest in his home state.”
Under President Donald Trump’s 2017 tax reform plan, the federal government capped SALT deductions at $10,000. Most people who pay $10,000 or more in state and local taxes live in progressive, wealthy areas with high taxation, such as Manhattan and San Francisco.
Schumer wants to repeal the SALT cap because it is forcing wealthy New Yorkers to pay their state and local taxes without subsidization from conservative, low-tax areas.
A Manhattan Institute report said that 96 percent of the money from the deductions would flow to the top 20 percent of income earners. More than half (56 percent) would flow to the top 1 percent—a group long vilified by the Left’s rhetoric but frequently courted by them during campaign season.
Perdue said he and his Republican Senate colleagues would not allow Schumer to accomplish the plan.
“That’s the most hypocritical thing I have ever heard,” he said. “It’s not going anywhere in the United States Senate, I assure you.”