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        <title><![CDATA[‘Millionaires Don’t Need a New Tax Break’: Grassley Blasts Pelosi’s Attempt to Eliminate SALT Deduction Cap]]></title>
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            <media:title type="html">‘Millionaires Don’t Need a New Tax Break’: Grassley Blasts Pelosi’s Attempt to Eliminate SALT Deduction Cap</media:title>
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        <content:encoded><![CDATA[<figure class="inline-image inline-image--captioned "><figcaption><em>Sen. Chuck Grassley speaks in Washington, D.C., September 4, 2018.</em></figcaption></figure><p>The office of Senator Chuck Grassley on Tuesday panned House Speaker Nancy Pelosi’s push to repeal the cap on state and local tax deductions in the next coronavirus relief bill.</p><p>The SALT deduction cap, which was implemented in 2018 as part of the Republican-led tax reform bill, places a ceiling of $10,000 for deductions from federal returns of property taxes or state and local taxes. The deduction primarily benefits high-earners living in high-tax states.</p><p>Pelosi argued that “retroactively” scrapping the deduction cap would inject much-needed cash into American households struggling in an economy flagging from the restrictions placed on business, part of efforts to stem the spread of the coronavirus.</p><p>“We could reverse that for 2018 and 2019 so that people could refile their taxes,” Pelosi told the <em>New York Times</em>. “They’d have more disposable income, which is the lifeblood of our economy, a consumer economy that we are.”</p><p>Grassley, who chairs the tax-writing Senate Finance Committee, dismissed her reasoning on the grounds that eliminating the SALT cap would only mean more tax breaks for the wealthy.</p><p>“This is a nonstarter. Millionaires don’t need a new tax break as the federal government spends trillions of dollars to fight a pandemic,” <strong>said</strong> a spokesperson for the Iowa Republican.</p><p>The speaker’s remarks sparked swift pushback from other Republican lawmakers as well.</p><p>“If we determine that another measure is necessary, it should not be the vehicle for Speaker Pelosi’s partisan, parochial wish list,” said Senator Patrick Toomey, a Republican from Pennsylvania.</p><p>Repealing the SALT deduction cap totally for just 2019 would result in additional federal revenues of about $77 billion, according to the congressional Joint Committee on Taxation. About $40 billion of that money would land in the pockets of Americans earning $1 million a year, and the remainder would go to households with an income of $200,000 or more.</p><p>The deduction cap is scheduled to expire in 2025.</p>]]></content:encoded>
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