The Northeast Department threatens to ban Biden’s infrastructure facilities unless tax relief is included
Democratic lawmakers have criticized various aspects of President Biden’s $2.3 trillion infrastructure plan in recent days, including representatives from the Northeast, saying they will not support any bill that does not remove the upper limit of state and local tax credits. For now, the bill does not include language to remove the cap, which was set at $1
0,000 in the 2017 tax law. According to the Wall Street Journal, although House Speaker Nancy Pelosi sympathized with the idea, the White House said that lawmakers should propose a way to fund this relief. In a letter to Secretary of the Treasury Janet Yellen (Janet Yellen) last week, a group of Democratic lawmakers from New Jersey, New York and Minnesota stated that they “if they do not restore the SALT deduction, they will not be able to vote for our voters. Significant tax implications of the bill. Give our middle-class families.” Representative Tom Suozzi (New York State Democrat) was one of the signatories, and Punchbowl News considered this letter to be “no The stance of adding salt, no agreement” is not so strict, but the New York Democrat stated that his position “has not been softened.” position. He reiterated to the newsletter: “No salt, no deal.” However, other Democrats in the organization reportedly admitted to Punchbowl News, “They have no real strategy, and even if the SALT clause is not included, they may Vote for the transaction.” At the same time, many Democrats criticized Biden’s proposal to increase taxes on companies as part of the infrastructure plan, which would raise the corporate tax rate from 21% to 28% and increase the amount of Income tax. The White House stated that the tax increase will cover the cost of the $2.3 trillion package in the next 15 years. The measure proposes to improve the funding of roads, bridges and bus systems, and expand broadband access and other efforts. However, some members of the president’s party suggested borrowing money to pay for investments in the bill or raise other taxes, such as gasoline taxes. According to the Wall Street Journal, Peter DeFazio (Oregon), chairman of the House Transportation and Infrastructure Committee, said that he does not believe that tax increases are necessary to cover the full cost of the program. De Fazio said that in addition to increasing borrowings, he will also support the increase in gasoline and diesel taxes to pay for new investments. Despite this, the White House and many other Democrats still do not support raising gasoline taxes or collecting revenue from electric vehicles. They believe that taxation has a disproportionate impact on low-income earners, which may hinder the development of green transportation. Even with the Democratic majority, if Biden cannot obtain near-unanimous support within the party to advance the measure without a Republican vote, it will be difficult for him to pass legislation.