Many Democrats will not support President Joe Biden’s infrastructure bill if it does not include a repeal of the Trump-era limits on state and local tax (SALT) deductions, Rep. Debbie Dingell, D-Mich., warned Thursday.
SALT deductions allow taxpayers in high-tax states to deduct local tax payments on their federal returns.
“I know my Democratic colleagues have made very clear, the ones that are in New York and New Jersey, that they will not support an infrastructure bill that does not take SALT into account,” Dingell said on Fox Business’ “Mornings With Maria.”
However, she added, there are many CEOs who are not objecting to Biden’s call to raise the corporate tax rate to 28% to help fund the $2.5 trillion infrastructure bill’s costs.
“[Amazon CEO] Jeff Bezos has said that in the last week,” said Dingell, noting that many companies that are locating overseas are paying “zero amount of taxes,” including some in her own state, and with calls being made to raise the international corporate tax as well, that would stop.
“We have to have a fairer tax system,” she said. “When you have corporate CEO who are saying, you know, this is fair, I think we have to look at it. I think a lot of people are having conversations.”
She added there is a “lot of fearmongering” over the effects the infrastructure bill will have on the economy, but there are “thoughtful conversations” going on between Republicans and Democrats about what should happen.”
“I think that Joe Biden is very sincere in saying he wants to hear from Republicans and Democrats about what should happen.”
Show host Maria Bartiromo told Dingell that while Biden has said he’s willing to negotiate on the 28% corporate tax rate that he envisions, Democrats already pushed through a $1.9 trillion bill under the name of COVID relief with no Republican support
“What do you think your constituents are going to say when they are told you’re going to start subsidizing New York and California again because we are going to make the SALT deductible so that New York and California continues to raise taxes and the rest of the country pays for it,” Bartiromo said. “Wasn’t that the conversation when the SALT deduction went away?”
Dingell said she believes the infrastructure bill will be a “fair” measure that looks at all the states.
“The concepts have been laid out, but the details are right now being written,” she said “I’m working on a number of parts of this bill that I feel very strongly about, electric vehicles…we have to build the electric vehicle infrastructure to be able to support electric vehicles. The grid needs to be upgraded to be able to handle these additional, so there are a lot of things that will be in the bill.”
Meanwhile, Dingell said she could not agree with Bartiromo that Biden has made the situation worse at the border after reports that children were sexually abused at one of the migrant centers
“We need comprehensive immigration reform, and Republicans, Democrats have never had the ability to come together and address it and the time is now for us to come up with a comprehensive immigration reform policy and then enforce it,” said Dingell.
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