Congress

Dems New Party of the Wealthy, IRS Data Show

(USA Features) Though Republicans for decades were viewed as the party representing corporations and wealthy Americans, a new study of Internal Revenue Service data indicates the mantle now belongs to Democrats.

According to an analysis of the data by Bloomberg News, Democrats accounted for 65% of taxpayers whose combined household income was $500,000 or more in 2020, while the same data showed that 74% of households in GOP-controlled districts earned less than 100,000.

The ratio was reversed in 1993 when typical Republican voters earned about 14% more than their Democratic counterparts. In 2020, those GOP districts are now 13% poorer.

The data come as Democrats are pushing to end a provision in former President Donald Trump’s 2017 tax reform law that caps the federal deduction for state and local taxes at $10,000. Those beneficiaries would be mostly the 1% of earners in the U.S., the majority of whom vote for Democrats in high-tax states.




Some Democrats who successfully flipped previously red districts in predominantly blue states have said they are making restoration of the deduction a priority.

“I’m not voting for any change in the tax code whatsoever unless there’s the restoration of the SALT tax deduction. I’m laying that chit on the table,” said Democratic New York Rep. Tom Suozzi.

Other Democrats are threatening to blow up President Joe Biden’s $2 trillion infrastructure bill if it does not contain a provision to end the deduction cap.

“We’re going to keep fighting until this is part of the bill. It’s as critical as a road or a bridge or a tunnel, which is why we are going to keep fighting for it until the end,” New Jersey Democratic Rep. Josh Gottheimer said.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: