Fact Check: Biden's Build Back Better bill proposed raising SALT deduction cap to $80,000.

Fact Check: "Biden's Build Back Better bill proposed raising SALT deduction cap to $80,000."

What We Know

The claim that President Biden's Build Back Better bill proposed raising the State and Local Tax (SALT) deduction cap to $80,000 is accurate. The latest version of the Build Back Better Act, as discussed in various sources, indeed includes a provision to raise the SALT deduction cap from $10,000 to $80,000 through 2030. This change is aimed at providing tax relief primarily to high-income households, as noted by the Washington Post and confirmed by the Tax Policy Center.

The SALT deduction cap was originally established by the Tax Cuts and Jobs Act (TCJA) of 2017, which limited the deduction to $10,000. The proposed increase in the cap is part of a broader $275 billion tax cut included in the Build Back Better legislation, which is expected to primarily benefit the wealthiest Americans, according to analyses from the Committee for a Responsible Federal Budget.

Analysis

The evidence supporting the claim is robust and comes from multiple credible sources. The PDF fact sheet from Rep. Joe Neguse's office explicitly states that the Build Back Better Act would raise the SALT deduction cap to $80,000 through 2030. This aligns with reports from the Washington Post and the Tax Policy Center, which both confirm the proposed increase and its implications for high-income earners.

However, it is important to note the context and potential biases in the reporting. For instance, while the increase in the SALT cap is framed as a tax cut, critics argue that it disproportionately benefits the top 10% of income earners, raising concerns about equity in tax policy. The Tax Foundation and other analyses suggest that this provision could undermine the fiscal responsibility goals of the Democrats and exacerbate income inequality.

The reliability of the sources is generally high, as they include reputable news organizations and tax policy think tanks. However, the framing of the information can vary, with some sources emphasizing the benefits to high-income households while others highlight the potential revenue implications and the broader context of tax policy reform.

Conclusion

Verdict: True
The claim that Biden's Build Back Better bill proposed raising the SALT deduction cap to $80,000 is true. The proposal is well-documented in multiple credible sources, and while it aims to provide tax relief, it is also criticized for primarily benefiting wealthier individuals. The context of this tax policy change is crucial for understanding its implications on equity and fiscal responsibility.

Fact Check: Biden's Build Back Better bill proposed raising SALT deduction cap to $80,000.