To the surprise of Democrats across the land, House Speaker Nancy Pelosi and New York Senator Chuck Schumer are pushing for tax cuts for their wealthy comrades. This is quite concerning considering the fact that Pelosi and Schumer claim to be advocates for the less fortunate.
Schumer and Pelosi Favor Tax Cuts for Those at the Top
It is hard to believe Schumer and Pelosi are pushing tax cuts for the wealthy when they claim to stand for the exact opposite. The two prominent politicians and their fellow Democrats are fiercely advocating for a nearly $140 billion tax cut for the wealthiest Americans. In fact, even Democratic Presidential nominee Joe Biden is pushing for the gigantic tax cut for the wealthy. The trio is adamant that the $10,000 cap on local and state tax deductions should be eliminated. This deduction is commonly referred to as the SALT deduction.
The common leftist argument about minimizing the SALT deduction is that it essentially equates to a considerable tax hike on the wealthy, especially in jurisdictions where taxes are comparably high. Examples include San Francisco and New York City, both of which are the political bases of Pelosi and Schumer. The limited SALT deductions has hit the pockets of wealthy Democrats harder than most assume. In fact, some such well-off leftists packed up their belongings and headed south for red and purple states such as Florida.
New York has a Tax Problem
The flight of the wealthy away from liberal bastions to save on taxes has proven especially common in New York state. The Empire State’s uber-progressive tax code puts the brunt of the tax burden on a small number of taxpayers. A small percentage of hardworking New Yorkers carry the tax load for the rest, funding nearly the entirety of both local and state governments.
Let’s crunch the numbers to better understand the tax situation in New York State. The much-maligned 1% of our society earns $700,000 or more per year. These individuals have paid around 44% of all income taxes in the Empire State both inside New York City limits and outside. However, as time progress, more and more of these wealthy individuals flee to states such as Nevada, Texas and Florida where the taxes are considerably low.
The fallout from the exodus of the wealthy will either be a reduction in the state’s budget or a bump up in taxes on the middle class. Rather than reform the state’s tax policies, Governor Cuomo complained that the federal government should continue to subsidize taxes.
The Solution is Obvious
It is time for liberal bastions such as New York state to reduce the tax burden on the wealthy. However, limousine liberals refuse to make their tax rates more competitive. While Pelosi and Schumer are now pushing for tax reductions on the wealthy, the likes of Andrew Cuomo refuse to budge from their position even the slightest bit. However, if we could listen to closed door conversations between the likes of Cuomo and Pelosi, we would likely hear that Cuomo is also in favor of tax cuts on his wealthy friends yet would never admit it publicly. Stay tuned. The tax situation in America’s most liberal cities will prove even more dire and dramatic in the months and years to come. Something has to give.