President Biden's Build Back Better package would raise, not lower, taxes for millionaires, according to the nonpartisan Joint Committee on Taxation in a correction from the group's original analysis.
Nov. 18, 2021The discrepancy stems from the bill's changes to the state and local tax deduction — known as SALT — which Democratic leaders added at the last minute in order to secure the votes of lawmakers from New Jersey, New York and California. The bill would lift the cap on state and local tax deductions from $10,000 to $80,000.
The committee's analysis before the correction found that the SALT provisions would give two-thirds of people making more than a million dollars a year a tax cut. The new analysis shows the average tax rate for millionaires going up by 4.1 percentage points in 2023 and 3.3 percentage points in 2025.
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