(Photo : Photo by Mark Wilson/Getty Images)
WASHINGTON, DC - JULY 24: Jason Furman, chairman of the Presidents Council of Economic Advisors, speaks during a discussion about analyzing the economy July 24, 2015 in Washington, DC. The discussion focused on the Bureau of Labor Statistics monthly jobs report.
Barack Obama's former economic adviser, Jason Furman, recently criticized the Democrats' plan to repeal a cap on state and local taxes (SALT) deductions. On his Twitter account, Furman called the proposal obscene and said that the repeal of SALT deductions would primarily benefit the rich.
When Donald Trump was president, he launched the Tax Cuts and Jobs Act that capped SALT deductions at $10,000. But during Joe Biden's administration, Democrats were pushing to get rid of the cap throughout the next five years.
"My guess is the majority of Americans who have a net worth of $50 to $300 million would get a tax cut under the Build Back Better plan with a full repeal of SALT. The bill would do more for the super-rich than it does for climate change, childcare or preschool. That's obscene," Furman said via Yahoo! News.
Furman added that billionaires would get a net tax cut from Build Back Better and SALT repeal. He's also estimating that those who have a $200 million wealth likely have an income below $10 million.
CRFB's analysis reveals wealthy Americans will benefit
The Committee for a Responsible Federal Budget (CRFB) also analyzed what the Democrats are trying to do. They said that those in the top five percent after the SALT cap repeal takes into effect would get a $30 billion net direct tax cut.
Rep. Josh Gottheimer of New Jersey was first to say that the tax cut provision has been added into the Senate Democrats' Build Back Better plan. He's also confident that the repeal in the cap will take into effect after the Build Back Better bill is signed.
Repeal tax cap supported by 32 legislators
According to Business Insider, the repeal currently has the support of 32 legislators from both sides. It also has the backing of Senate Majority Leader Chuck Schumer.
Sen. Ron Wyden of Oregon, who supports the repeal of the cap, said that this is their way of punishing blue state voters.
Sen. Cory Booker of New Jersey also slammed those saying that the tax would benefit the rich. He said that some people living in low-income neighborhoods are paying over $10,000 in taxes. Booker stressed that the repeal of the cap would benefit middle-class households, as well as lower-income families.
Sen. Bernie Sanders doesn't support the tax cuts
However, not all Democrats are on board with the tax cut. Sen. Bernie Sanders of Vermont is convinced that the repeal of the cap will benefit the wealthiest people in America. But Sanders also said that he's open to a compromise together with those that support the plan.
Last month, Bloomberg claimed that Biden might find it challenging to roll back Trump's unpopular tax cuts in 2017 because of unyielding resistance among even some in his party to raise taxes.
The publication also said that Biden could follow in Obama's footsteps by keeping the vast majority of their predecessors' tax reductions in Congress.
Biden is still negotiating with some Democrats over his proposed $1.75 trillion budget for the Build Back Better bill as of press writing.
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