Most millionaires would receive a tax cut from the Democrats’ “Build Back Better” bill, and many middle-class taxpayers would see a tax increase.
That last point is politically salient. President Joe Biden absolutely positively 100% swore and promised he would not hike taxes by a penny on a single middle-class taxpayer.
Phil Klein at National Review spells it out. Citing a Tax Policy Center study, which concludes “roughly 20 percent to 30 percent of middle-income households would pay more in taxes in 2022,” Klein quotes Biden, who said:
“Here’s the deal: I pay for every single thing I’m proposing without raising your taxes one penny. If you make less than 400-grand you’re not going to get a penny tax.”Meanwhile, most millionaires would get a tax cut from this bill, thanks to the expansion of the special deduction for state and local taxes — a tax break that almost entirely benefits very high-income people. On net, millionaires would pay more because one-third of millionaires would see tax hikes that drown out the tax cuts that most millionaires get.
But here’s the most interesting math, in my mind, via the Center for a Responsible Federal Budget: “A household making $1 million per year will receive ten times as much from SALT cap relief as a middle-class family will receive from the child tax credit expansion.”
This tells you where the Democrats’ priorities are.
