The Democratic Party has leaned heavily into affluent suburbanites as maybe the most important part of their coalition and they're throwing them a huge bone in the Build Back Better bill. They would get a massive tax cut, and that cut adds a lot to the cost of the overall plan.
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Sam: Let's just talk about the better bill. The biggest expenditure as far as I can tell or one of the biggest expenditures in the bill is not universal pre-k. It is not child care. It's not a tax credit. It is the expansion of the limit on what you can deduct from your taxes in the state and local taxes. This was the only decent thing as far as I could tell in terms of like the Trump tax bill was to basically say like you know there was some talk that this is going to put pressure on some states California new york new jersey to raise their taxes on or to drop their taxes and cut services. But I don't think that's borne out frankly. And it turns out that super-wealthy people can afford to pay their taxes. and don't want to move to some other state because they have to pay taxes. give me your sense of how relevant that is within the context of the bill and you know is it I mean I get a sense of what it tells us about what's wrong with our politics but just your sense on that.
Bouie: yeah I mean it's clearly there to get the votes of a handful of conservative democrats especially conservative democrats in new jersey and the states where this is most relevant to get their votes and get them to sign on. It's also clear that in the senate, which now that this bill is passed, it's going to go to the senate and the senate is going to have its hands on its hands-on it that powerful senate democrats like Bernie sanders are very unhappy with the expansion of the salt deduction. so my sense is that this is this may end up being a real area of contention and I would hope I mean my personal preference here is for that deduction if not to be removed entirely which is probably not going to happen for these political reasons but at least sort of like scale down quite a bit before it goes back to the house before it goes for the final conference vote on in both chambers. That would be my preference. But it is, I mean it does speak to, I think one of the challenges democrats have is that their coalition now includes a whole bunch of affluent suburbanites. And this is the kind of thing that affluent suburbanites do that they like. Even if it is sort of, I think antithetical to a big tax cut for rich people who own multiple homes right like is antithetical to what the democratic party is supposed to stand for. but the fact that it includes the party coalition now includes all of these affluents of burglarizing the representatives kind of makes it a challenge makes it a struggle. We'll see if those conservative democrats are basically willing to compromise on their tax cuts to get a big-spending priority for the president.
Sam: I mean, does Joe Manchin care about it? I mean I mean I guess like this is like it seems to me I mean I find it just grotesque frankly that you know this it just seems so miserly. and I mean it really just does. and you know that Gottheimer just as I don't know 20 or 30 donors in his district who are at whatever you reverse engineer whatever you know it takes for them to be paying $80,000 in state and local taxes the reverse engineer whatever they're making annually I don't know six-seven hundred thousand dollars a year who knows what it is. it just seems but in the long and short of it you know I'd like to see us do you know to go back and institute the billionaire's tax and do a wealth tax and just across the board. tax rates are you know I don't care about the specific deduction in and of itself. if the package was bigger I also it seems to me it would be a fair trade if they but does joe Manchin care about that? That seems to be the problem. like if this was a sop to Joe Manchin and he was going to sign on to at least the 1.75 which again a big you know significant chunk of that 1.75 is just tax deduction tax break for very targeted wealthy people.
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