Progressives reflexively denounce tax cuts and spending cuts as “giveaways to the wealthy” or “stealing from the poor.”
So, take it with a grain of salt when House Minority Leader Hakeem Jeffries, D-N.Y., rails against the newly enacted One Big Beautiful Bill for 8 hours and 44 minutes straight. Or when Senate Minority Leader Chuck Schumer refers to the legislation as the “Well, We’re All Going to Die Act.”
Casting the new law as stealing from the poor to give to the rich is a calculated distortion—one that omits that the act increases the child tax credit and standard deduction, and provides tax deductions for tipped employees, overtime workers, senior citizens, and domestic car loans.
The only major new “tax cut for the rich” in the legislation is one that Jeffries and Schumer have championed and that almost all conservatives oppose—an increase in the cap on the state and local tax (SALT) deduction.
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Members of Congress from liberal high-income, high-tax states have long supported an increased SALT cap because it allows high earners in their districts to deduct their state and local taxes from their federal taxable income. But other than the expansion of the SALT deduction, taxes for high earners will remain almost completely unchanged after the One Big Beautiful Bill takes effect, as the rest of the tax provisions either extend current policy or else focus tax cuts mostly on middle-income Americans.
A few moderate Republicans in blue states pressured Republican leadership to include the increase in the SALT cap from $10,000 to $40,000. Fortunately, the higher cap sunsets in 2030 and reverts to the $10,000 cap implemented by President Trump’s 2017 Tax Cuts and Jobs Act (TCJA).
When 2030 rolls around, how many on the left who are now slamming the Big Beautiful Bill as a giveaway to the rich will turn around and fight to extend or expand the SALT cap? Both Jeffries and Schumer have said that the $40,000 cap is still too low, and have advocated not just for increasing it, but for eliminating the cap altogether, even though over 56 percent of the benefit of eliminating the cap would go to the top one percent of earners.
Leftwing lawmakers’ hypocrisy on the SALT deduction perfectly encapsulates their penchant for being very generous, but only when it involves other people’s money. The SALT deduction is their free pass from living with the financial consequences of their own cities’ and states’ tax-and-spend policies.
Most of the One Big Beautiful Bill’s tax provisions simply extend tax policies that have already been in place for eight years under the TCJA, including lower tax rates across income brackets, a larger standard deduction and child tax credit, and a tax deduction for small businesses.
The One Big Beautiful Bill also adds many new tax cut provisions targeted mostly at middle-income Americans.
It allows a federal tax deduction of up to $25,000 in tips received and $12,500 of overtime pay ($25,000 for joint filers) for filers making less than $150,000 ($300,000 for joint filers). It adds a new $6,000 federal tax deduction for seniors, with income phaseouts beginning at $75,000 for single filers and $150,000 for joint filers. It establishes a $10,000 car loan interest deduction with income phaseouts starting at $100,000 for single filers and 200,000 for joint filers.
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It also allows businesses to immediately deduct the cost of constructing new factories and structures that produce or refine American products, instead of waiting up to 39 years to claim those costs, removing a senseless tax penalty against building and investing in America.
These provisions were designed to fulfill Trump’s campaign promises to waitresses, barbers, nurses, factory workers, and middle-income parents and seniors—not millionaires and billionaires.
The new law also increases the child tax credit from $2,000 to $2,200 per child and indexes it to inflation in subsequent years, with income phaseouts set at $200,000 for single filers and $400,000 for joint filers. If Congress failed to pass any tax bill this year, the child tax credit would have reverted to $1,000 per child.
The One Big Beautiful Bill delivers on Trump’s campaign promises to everyday Americans and prevents an economy-crushing tax hike that would have disproportionately hit the bottom 75% of taxpayers.
Love it or hate it, nobody who pushed for an unlimited SALT cap has grounds to label this package a “tax cut for the rich.” But many SALT supporters on the Left seem stuck in an alternate reality where they are the great defenders of “working Americans” against the rich.
When they prattle on for 8-hours and 44 minutes, they make it easy for everyday Americans to tune out such divisive delusions.
This piece originally appeared in MSN