Americans will soon receive a much-needed handout of up to $1,200 per person from the coronavirus stimulus bill. Here are some answers to your most pressing questions about how Americans will receive their stimulus money.

Get all the latest news on coronavirus and more delivered daily to your inbox. Sign up here. 

The office of Senate Finance Committee Chairman Chuck Grassley, R-Iowa, blasted House Speaker Nancy Pelosi after she proposed rolling back a cap on state and local tax (SALT) deductions as part of the next coronavirus response bill.

The SALT cap, which was put in place by President Trump’s 2017 tax reform law, limits deductions of state and local tax from federal taxes at $10,000. The cap has been particularly unpopular in high-tax blue states. Grassley’s office argued that eliminating this now would not help the working class, as it would mostly benefit wealthier Americans.

$2 TRILLION WASN’T ENOUGH: LAWMAKERS ALREADY EYEING ANOTHER CORONAVIRUS RESPONSE BILL

“This is a nonstarter. Millionaires don’t need a new tax break as the federal government spends trillions of dollars to fight a pandemic,” a spokesperson for Grassley said.

Pelosi told The New York Times that if Congress repealed the cap and made it retroactive for 2018 and 2019, it would give Americans “more disposable income, which is the lifeblood of our economy, a consumer economy that we are.”

House Democrats have been trying to repeal the SALT cap without success. The cap is currently set to expire in 2025.

GRAHAM SLAMS PELOSI, SAYS SHE HELD UP CORONAVIRUS AID TO ADD ‘LIBERAL SPECIAL-INTEREST SHOPPING LIST’

New York, New Jersey, Maryland and Connecticut even sued to repeal the SALT cap, claiming that it unfairly hit blue states. That lawsuit was dismissed by a federal judge, and the states are appealing.

Many wealthy residents have been moving out of those states and fleeing to states like Florida, which has no state income tax. Florida received more new residents than any other state last year, while New York’s outflows to the Sunshine State were the highest – 63,772 people. New York had the third-largest outflows of any state, with 452,580 people moving out within the past year.

Treasury Secretary Steve Mnuchin has suggested that if the states want to prevent this from happening, they should lower their taxes.

A 2019 report from the Joint Committee on Taxation projected that of those who would face lower tax liability from elimination of the cap – which only affects those who itemize tax deductions – 94 percent earn at least $100,000. The government would lose out on $77.4 billion in tax dollars, with more than half of that amount being saved by taxpayers earning $1 million or more.

A spokesperson for Pelosi told the Times that her current proposal is not a full elimination of the SALT cap, and that it would be “tailored to focus on middle-class earners and include limitations on the higher end.”

Fox Business Network’s Brittany De Lea and Fox News’ Jason Donner contributed to this report.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

The Kavanaugh fight defined the 2018 election — until it didn’t

We don’t need to look back very far to see what happens when a Supreme Court vacancy occurs shortly before a federal election. In fact, it’s practically become a norm, with vacancies occurring in 2016, 2018 and, with the death…

Live updates: 2020 election season’s final weeks face new uncertainty

White House Chief of Staff Mark Meadows joins Judge Jeanine by phone providing update on the president’s condition. The 2020 presidential election campaign was upended early Friday when President Trump announced he had tested positive for the coronavirus. With four weeks left until…

New York, New Jersey, Connecticut add 10 states to mandatory quarantine restriction list

Arkansas Governor Asa Hutchinson weighs in on NY, NJ and CT imposing travel advisory for coronavirus hotspots New York Gov. Andrew Cuomo, New Jersey Gov. Phil Murphy and Connecticut Gov. Ned Lamont on Tuesday announced that individuals traveling to the region…

A week before primary, Wisconsin faces poll worker shortage

Wisconsin’s primary is supposed to take place a week from Tuesday, but there are growing concerns about a shortage of poll workers and whether there will be enough resources to ensure a flood of absentee ballot requests can be processed.…