Nancy Pelosi and the Democrats received a nasty surprise.
Pelosi and her allies now have to rethink everything.
Nancy Pelosi got served with an ultimatum that is the biggest threat to her power.
Democrats are planning to pass a four-trillion-dollar socialist welfare state expansion disguised as a so-called “infrastructure” bill.
The left is going for broke knowing they can use the budget reconciliation process to pass this bill with just Democrat votes and avoid a filibuster.
Democrats propose four trillion in spending and over three trillion in new taxes as part of this big government Frankenstein.
But Nancy Pelosi has a problem on her hands.
Due to the Democrats’ narrow majority, she can only afford to lose three votes or else the bill will fail.
And now two Democrats have stepped forward to say unless Democrats restore a giveaway to rich blue state voters, they will not support the bill.
New Jersey Democrat Josh Gottheimer and New York Democrat Tom Suozzi announced unless this bill repealed the $10,000 cap on state and local tax (SALT) deductions that was part of the 2017 Trump tax cut bill, they would help kill Biden’s socialist spending bill.
“No SALT, no dice,” Gottheimer declared. “It’s got to be responsible and both parties need to be at the table. This can’t just be jammed through without input and consideration from the other side.”
“We need to be careful not to do anything that’s too big or too much in the middle of a pandemic and an economic crisis,” Gottheimer added.
Suozzi doubled down on Gottheimer’s opposition.
“I’m not voting for any changes in the tax code unless we reinstate SALT as part of the deal,” Suozzi added.
The SALT deduction allowed blue states to impose high tax regimes on their voters to fund socialist welfare states because blue state voters could deduct their local taxes from their federal taxes.
This tax loophole created a situation where blue states could continually raise taxes to fund left-wing wishlist items without their voters feeling the pain in their bank accounts because the state payments ended up serving as a massive deduction on their federal taxes.
If Democrats repeal the SALT cap, they will have to find even more taxes to raise since West Virginia Democrat Joe Manchin says he is not voting for any bill that isn’t paid for.
White House press secretary Jen Psaki downplayed the rebellion by telling the falsehood that no one making less than $400,000 a year will see a tax increase.
“We know there will be a range of views on how we get there, but we look forward to working with a broad coalition of members on the critical priorities of the president’s plan.” Psaki stated. “Creating good jobs and making America more competitive — paid for without any tax increase on people making less than $400,000 a year.”
In fact, Psaki herself confirmed that the $400,000 per year refers to household income so a husband and wife whose total income adds up to over $400,000 per year will see a tax increase even if they each make less than $400,000 per year.
With such narrow margins in the House and Senate, any one Democrat can threaten to derail a piece of legislation.
Gottheimer and Suozzi are throwing down their marker on a giveaway from rich blue state voters.
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