The SALT cap doesn’t look like it’s going anywhere.
The Inflation Reduction Act, which somewhat dramatically passed the Senate on Sunday with the vice president casting the deciding vote, does not eliminate the much-discussed $10,000 cap on state and local taxes.
Nonetheless, Democrats Cory Booker and Bob Menendez both backed the $750 billion bill and you can expect Democratic House members to do the same. That vote is expected on Friday.
Reps. Mikie Sherrill and Josh Gottheimer already have said they would vote “yes.”
But what about the SALT cap, which Dems have pledged to get rid of?
Sherrill said she will “remain steadfast” in ensuring that any reforms to the 2017 tax law begin with addressing SALT.
However, she will vote for the inflation reduction bill because “it does not raise taxes on families in my district, but in fact significantly lowers their costs.”
Gottheimer said something similar.
Republicans are going to make a big deal over the failure to get rid of the SALT cap.
But it’s reasonable to ask, how far is that issue going to go?
As Menendez pointed out, it was the Republicans who imposed the cap in the first place.
That’s a valid point.
More broadly, one has to consider not only the bill that passed the Senate on Sunday, but other recent legislation, namely a bill to help the nation’s microchip industry.
All politicians enjoy posturing, but there comes a time when you need to act.
And that is what we’ve seen with these two bills.
Democrats are hyping Sunday’s legislation as one of the most consequential in the nation’s history in regard to fighting climate change.
That’s hyperbole to be sure, but the bill would make major investments through tax credits and other incentives to help businesses reduce pollution. It also would help people buy electric vehicles.
Also included is a provision allowing Medicare to negotiate some drug costs and the creation of a minimum tax of 15 percent for corporations that earn at least $1 billion a year and otherwise would pay no tax. And do not forget more money for the IRS.
Republican congressional candidates are going to lambaste this bill and the Democrats who vote for it. Naturally.
But it may be hard for Republicans to truly gain traction by trashing a bill designed to lower drug costs, make the likes of Amazon pay taxes and go after tax cheats.
Even if the SALT cap is still around.