Rich Democratic Lawmakers Stand to Benefit From the SALT Tax Cuts

The benefits of repealing the SALT cap would flow mostly to the wealthy. That includes House Democrats like Reps. Josh Gottheimer and Jamie Raskin, who are pushing the tax cuts and would save a bundle if they pass.

House Members announce Bi-partisan State and Local Taxes Caucus

Rep. Young Kim (R-CA) and others announce the formation of the SALT Caucus outside the US Capitol on Thursday, April 15, 2021. (Kent Nishimura / Los Angeles Times via Getty Images)


Democrats are threatening to hold up President Joe Biden’s signature infrastructure plan, which relies heavily on tax increases, in the hopes that Biden will eliminate the cap on the state and local tax (SALT) deduction. Leading the charge is the bipartisan SALT Caucus, a group of US representatives who mostly represent wealthy districts in blue states.

The benefits of repealing the SALT cap would flow toward the wealthy. A Brookings Institution study found that almost all (96 percent) of the benefits of repealing the SALT cap would go to the top fifth of all earners, while more than half (57 percent) of the benefits would go to the top one percent.

But the members of the SALT Caucus aren’t just looking out for their wealthy constituents. Three of the ten leaders of the SALT Caucus — Democratic Reps. Josh Gottheimer, Mikie Sherrill, and Jamie Raskin — pay more than $10,000 in property taxes, according to property records reviewed by the Daily Poster. If the SALT cap was eliminated, those three representatives would together be able to deduct more than $75,000 on their federal taxes that they wouldn’t be able to otherwise.

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