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Pro-SALT House Dems say they’ll back spending plan

Pro-SALT House Dems say they'll back spending plan

They’re not SALT-y.

A trio of House Democrats from New York and New Jersey have said that they’ll support the massive spending plan their party forced through the Senate over the weekend — despite their earlier insistence that any such bill lift the cap on state and local tax (SALT ) deductions.

Rep. Tom Suozzi, Mikie Sherrill and Josh Gottheimer insisted that the $740 billion so-called Inflation Reduction Act would not raise taxes on individuals, despite a recent analysis by the Joint Committee on Taxation that found levies would jump by $16.7 billion on American taxpayers making less than $200,000 in 2023, while those who make between $200,000 and $500,000 would have to pay $14.1 billion more.

SALT deductions were limited to $10,000 as part of former President Donald Trump’s tax reform plan in 2017, hurting residents of high-tax states like New York and New Jersey.

Late last year, all three lawmakers insisted that President Biden’s multi-trillion-dollar Build Back Better package increase the SALT caps, with Suozzi embracing the mantra: “No SALT, no deal.

”The Long Island rep told The Post Monday that he would support the package “because it is good for my constituents, good for America, and great for the environment.”

SALT Caucus.
The lawmakers previously insisted that any spending plan lift the cap on state and local tax (SALT) deductions.
Tom Williams/CQ-Roll Call, Inc via Getty Images
Rep. Josh Gottheimer.
“If someone tries to change the tax rates on families in my District, I will insist that we restore the State and Local Tax Deduction,” Rep. Josh Gottheimer vowed.
Kevin Dietsch/Getty Images

“Regarding SALT, the Inflation Reduction Act does not increase personal income taxes and ‘No SALT, no deal’ does not apply,” Suozzi added. “If any change is proposed in the personal income tax rate, I will insist that we restore the State and Local Tax Deduction.”

“The bill is fully paid for, in part, with provisions that go after tax cheats. It will also help pay down the debt — a fiscally-responsible way to get inflation down,” Gottheimer said Sunday after Vice President Kamala Harris cast the tie-breaking vote in the Senate.

“As for SALT, my line in the sand remains the same. If someone tries to change the tax rates on families in my District, I will insist that we restore the State and Local Tax Deduction,” he continued. “This legislation doesn’t raise taxes on families in my District — it reduces the financial burden on them. For that reason, and for its strong support of the climate, lower prescription drug prices, and job creation, I’ll be voting for it.”

Rep. Mikie Sherrill.
Rep. Mikie Sherrill said she would vote for the legislation because it “does not raise taxes on families in my district.”
Tom Williams/CQ-Roll Call, Inc via Getty Images

Sherrill also expressed her commitment to reforming SALT, but noted that “[b]Because this legislation does not raise taxes on families in my district, but in fact significantly lowers their costs, I will be voting for it.”

The measure passed by the Senate does out $369 billion on environmental programs, including tax credits for buyers of electric vehicles and rebates for low-income Americans to install renewable energy sources in their homes.

The legislation also includes provisions allowing Medicare to directly negotiate the prices of certain drugs and capping out-of-pocket costs at $2,000 annually. The bill also extends expiring Affordable Care Act subsidies through 2025, allowing people earning up to 150% of the federal poverty level to get health insurance for free.

Tom Suozzi.
Rep. Tom Suozzi previously embraced the “No SALT, no deal” mantra.
Tom Williams/CQ-Roll Call, Inc via Getty Images

A $35-per-month cap on what private insurers can charge out-of-pocket for insulin failed to survive the hours-long vote-a-rama that preceded the final vote, falling three “ayes” short of the 60 needed to make the legislation.

The House is expected to reconvene to debate and vote on the measure on Friday. It is expected to pass and be sent to Biden’s desk with all 210 of the chamber’s Republicans voting “nay.”

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What’s inside Democrats’ $740 billion tax, climate and health care bill

What's inside Democrats' $740 billion tax, climate and health care bill

Senate Democrats passed a $740 billion reconciliation package on Sunday that includes provisions that increase taxes on large corporations, address climate change and lower prescription drug costs.

Why it matters: The bill, though much smaller and less ambitious than what many Democrats wanted, has cleared its tallest hurdle and is expected to pass the House before heading to President Biden’s desk for his signature.

Taxes:
  • The bill puts a 15% minimum tax on corporations that earn more than $1 billion in annual profits, which is projected to raise at least $258 billion over the next 10 years.
  • It allocates $80 billion of additional funding over ten years for the IRS to in part hire additional staff members and strengthen tax collection and enforcement on corporations and high-income earners.
  • The Congressional Budget Office estimates that the new IRS investment could raise $203 billion in new revenue over the next decade, resulting in a net gain of $124 billion.
  • It does not include new taxes on families making $400,000 or less and no new taxes on small businesses.
Health care:
  • The bill increases health care spending by $98 billion, primarily by extending enhanced Affordable Care Act subsidies create through the American Rescue Plan for an additional three years.
  • It allows Medicare to negotiate the prices of certain drugs and puts a $2,000 cap on out-of-pocket prescription drug costs for people.
  • It originally contained a provision that would have capped out-of-pocket spending on insulin for patients enrolled in private insurance to $35, though it was blocked by Senate Republicans who argued that it violated the rules of reconciliation.
Climate:
  • The bill invests roughly $370 billion into initiatives to promote clean energy and reduce greenhouse gas emissions, likely becoming the most important climate bill in US history.
  • It gives tax credits to clean energy technologies, like existing nuclear power plants and advanced nuclear technologies, clean hydrogen, carbon capture and storage as well as wind and solar power.
  • It gives buyers who purchase North American-built electric vehicles up to $7,500 in federal tax credits to encourage the adoption of electric vehicles while jump-starting America’s electric vehicle industry.
  • It creates a methane fee program to fine corporations that emit the powerful greenhouse gas above federal limits.
  • Democrats have said the bill’s climate provisions put the US on a path to reduce its carbon emissions by up to 40% based on 2005 levels by 2030.

Go deeper: Biden’s BFD

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Biden says ‘inflation’ bill funds healthcare, ‘God knows what else’ in bizarre speech

Biden says 'inflation' bill funds healthcare, 'God knows what else' in bizarre speech

President Biden seemed unfamiliar Monday with the specifics of the massive spending bill dubbed the Inflation Reduction Act that Senate Democrats passed Sunday, saying only that it funds healthcare “and God knows what else.”

Moments earlier, the president misstated the size of last year’s $1.2 trillion bipartisan infrastructure spending law while touring flood damage in Kentucky.

“We’ve never done this before, but because of a number of things we got done on a bipartisan basis — like a billion, two hundred million-dollar infrastructure project — like what we’re doing today, we passed yesterday, helping take care of everything from health care to God knows what else,” said Biden, standing in front of a flood-damaged home on his first official trip since recovering from a “rebound” case of COVID-19.

“What we’re going to do is — we’re going to see, for example, they got to put a new water line in the community,” the president stumbled. “There’s no reason why they can’t at the same time be digging a line that puts in a whole new modern line for Internet connections. why? Why can’t we do that? So it’s going to be different. We’re going to come back better than before.”

Joe Biden
As President Biden toured flood damage in Kentucky, he said that the Inflation Reduction Act recently passed in the Senate funds health care and “God knows what else.”
AP

Biden spoke for only about four minutes, much of the time with his back to cameras as he looked around at buildings and people impacted by the recent flooding.

At one point in his remarks, the president — who turns 80 in November — suggested it may become possible to control the weather, before jokingly telling his destitute storm-ravaged audience, which included the commonwealth’s Democratic Gov. Andy Beshear and Rep. Hal Rogers (R-Ky.), that it was time to “run laps.”

“We’re all Americans. Everybody has an obligation to help. We have the capacity to do this. It’s not like it’s beyond our control. The weather may be out beyond our control for now. But it’s not beyond our control,” Biden said.

Joe Biden
Biden incorrectly stated the size of last year’s $1.2 trillion bipartisan infrastructure spending law during his speech.
REUTERS
Joe Biden
The legislation passed Sunday contributes almost $400 billion for environmental programs to combat climate change.
REUTERS

The Senate-passed legislation, which is expected to pass the House of Representatives as early as Friday, provides nearly $400 billion for environmental programs, including tax credits of up to $7,000 to buy electric vehicles, and roughly $64 billion to extend more generous COVID- 19-era Obamacare subsidies.

The spending is offset by new taxes on corporations, including a new 15% corporate minimum tax, increased IRS enforcement and allowing Medicare to directly negotiate drug prices.

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