The second most expensive part of President Biden's Build Back Better was an opportunity for central states to subsidize high tax states. The bill allowed residents in poorly managed states to shift from deducting up to $10,000 to deducting up to $80,000 on their federal return.
The benefit to anybody earning $50,000? Property and income tax could hardly approach $10,000. There is $0 benefit for this person as the additional $70,000 is not available to deduct.
The benefit for a person earning $500,000? Property and income taxes could easily be claimed on the additional $70,000 deduction. The effect:
- The federal government gets less money for BBB from Democrat strongholds on the coasts and Illinois.
- Democrat political contributors donate more to protect their tax break they paid for with campaign contributions.
- Waste to administration business friends continues due to less scrutiny (Big Boy taxpayers got a cut).
- With less money coming in, the Feds borrow or print more resulting in INFLATION TAX. (Where the value of savings accounts shrink along with the value in a paycheck due to higher gas and grocery prices. Low income earners are hit hardest. They also see their jobs lost to automation.)