Democrats’ $1.75 trillion social spending package could cut taxes for most millionaires, according to an analysis from the Tax Policy Center, The Hill reported. The analysis found that the package, called the Build Back Better plan, would give more than 65 percent of Americans making at least $1 million per year an average tax cut of $16,760. The other 34 percent of those in that income range would see their taxes increased by an average of more than $228,300, however, meaning that, overall, those earning $1 million or more would on average see their taxes raise by around $68,000. The tax cut comes because Democrats are proposing to lift an annual cap on state and local tax (SALT) in the most recent version of the bill. The current version of the bill in the House proposes to raise the cap from $10,000 to $80,000, holding it there through 2030. The cap would then revert back to $10,000 in 2031. The current SALT tax, which Republicans passed in 2017, is set to expire in 2025. Democrats have been at odds over how to address the SALT tax. House Democrats have expressed a desire to raise the level of the cap, while some senators in the party would prefer exempting taxpayers under a certain income level.
