THAT WAS THE WEEK THAT WAS:
Shot: AOC wears ‘Tax the Rich’ dress to Met Gala.
—The New York Post, Monday.
Chaser: SALT Break Would Erase Most of House’s Tax Hikes for Top 1%.
High-earning taxpayers would face much smaller tax hikes — or even cuts — if Democrats decide to restore the federal deduction for state and local taxes in legislation that’s now moving through the House.
If the SALT deduction were fully reinstated, the top 1% of taxpayers — those earning at least $401,601 — would face a tax increase less than half as large as that if the current cap on the write-off were retained, according to data from the right-leaning Tax Foundation.
* * * * * * * *
The figures shed light on a key debate among House Democrats over how to address the politically important tax break that benefits residents of Democratic strongholds, including New York, New Jersey and California. The tax portion of the economic legislation that passed the House Ways and Means Committee earlier this week omitted any plans to address SALT, instead leaving the issue to be negotiated by Democratic leaders.
—Bloomberg News, today.
Hangover: Sorry, AOC, The Rich Already Pay Their Fair Share.
You don’t have to agree with me that (over)taxing the wealthy undermines job creation and growth, or that a tax system that relies so heavily on the fortunes of the few creates more cronyism in Washington and more volatility everywhere else. But the idea that the rich don’t pay their “fair share” is absurd.
At this point in the conversation, progressives will set aside their calls for a “wealth tax” and start complaining about capital gains. Here, we simply have a point of disagreement: Ocasio-Cortez would see investment profits in the hands of Bernie Sanders, head of the Senate budget committee. I would rather see them in venture-capital projects and private-equity funds that churn investment dollars and boost technology and jobs. Progressives grouse about accumulation of wealth and then want policies that dissuade risk.
—David Harsanyi, Jewish World Review, today.