Monday, after weeks of negotiations between the White House and the conservatives Democrats Joe Manchin of West Virginia and Kyrsten Sinema of Arizona, a deal was announced.
Press secretary Jen Psaki told reporters that “Senator Manchin says he is ready to support a Build Back Better plan which fights inflation, is fiscally responsible and will create jobs ”, adding that the plan will be“ fully paid, reduce the deficit, and reduces the costs of health care, child care, elderly care and housing.
However, Joe Manchin has since said he will not vote on the package until its impact on the deficit is assessed.
At the same time, Senator Manchin urged House Democrats to quickly pass the bipartisan infrastructure plan. This proposal is a complete non-starter for Progressives who made it clear that they would not vote on the infrastructure plan until a vote on the reconciliation bill takes place.
Benefits for Homeowners in a $ 1.75 Trillion Reconciliation Package
According to the Eviction Lab, an eviction monitoring platform, more than 7,682 owners have submitted documents to see their tenants evicted this week.
Many homeowners were hoping Congress would include some support after many households struggled to make up their minds. mortgage payments after losing their job. At this point, the revised $ 1.75 trillion reconciliation package does not include mortgage relief for homeowners.
What are SALT deductions?
Another controversial aspect included in the Reconciliation invoice of $ 1.75 is the extension of state and local tax withholdings (SALT) passed within the framework of the Tax Cuts and Jobs Act 2017. Thanks to this legislation, Republicans capped the amount of taxes paid by households in SEL at $ 10,000.
Although initially viewed as a more conservative measure, some Democrats have adopted it. No Republican intends to vote on the reconciliation bill, so its inclusion is not a try to get their support.
The Committee for a Responsible Federal Budget (CFTB) called the move “regressive“and found that” A the five-year repeal would cost around $ 475 billion, with $ 400 billion in tax cuts for the richest 5% of households. “
The CRFB has also stated that it is being challenged by organizations on the right and on the left iincluding “Tax Foundation, Center on Budget and Policy Priorities, ITEP, American Enterprise Institute, Heritage Foundation, Manhattan Institute, Progressive Policy Institute, Brookings Institution, Center for American Progress, Committee for a Budget federal responsible, and others. “
However, the motivation behind the Republican attacks on the SALT deduction should be questioned after they backed the measure in 2017. Now calling it “tax shelter for the richIs strong language after organizations like the Tax Policy Center discovered that the legislation would “increase after-tax household income in the top 1% from 2.9% by 2025, about three times the Gain of 1.0% for households in the bottom 60%. “
While lawmakers who support the extension say the revenue will be offset in 2026 when tax cuts end. However, many organizations argue that the cuts could be extended again, which could lead to a trillion dollars lost in tax revenue over the next decade.