Senator Chuck Schumer Pushes for Expiration of $10,000 Tax Deduction Cap for Wealthy Homeowners, Could Cut Federal Revenue by $200 Billion
According to The New York Sun, Senator Chuck Schumer is pushing for a significant tax cut for wealthy homeowners in states like California, New York, and New Jersey, but only if Democrats gain more power in the upcoming elections. The $10,000 limit on state and local tax deductions, which was established during Trump’s administration, is set to expire next year. Schumer has vowed that he won’t allow Republicans to renew this limit, turning it into a major campaign issue for Democrats in New York.
The cap on deductions, part of Trump’s 2017 tax reforms, is set to end next year. Senator Chuck Schumer’s plan to let it expire could cut federal revenue by about $200 billion over ten years. Some Republicans had suggested changes to the “marriage penalty,” which limits joint deductions, but their proposals were rejected.
READ ALSO: $500 Debit Cards: Harris County Revamps Uplift Harris Program to Address Texas Supreme Court’s Constitutional Concerns
$200 Billion Tax Cut: Senator Chuck Schumer’s Plan to Target Wealthy Homeowners in Key States (PHOTO: Politico)
Sanders Criticizes Proposal to Lift Tax Deduction Cap, Citing Concerns Over Income Inequality and Wealthy Tax Breaks
Liberal lawmakers, including Senator Bernie Sanders, argue that lifting or changing the cap would mainly help the wealthy and increase income inequality. Sanders believes that Democrats should focus on making sure the rich pay their fair share rather than giving them more tax breaks. This debate shows the clash between helping high-income households and tackling economic inequality.
READ ALSO: 1.25 Million North Carolina Taxpayers to File for Free with IRS Direct File Program, Saving $5.6 Million in Fees and Claiming $90 Million in Refunds!
