Democrats Push for Massive Tax Cut for the Richest, Brookings Says

House Speaker Nancy Pelosi (D-Calif.), with Senate Minority Leader Chuck Schumer (D-N.Y.), speaks to reporters at the Capitol in Washington on Aug. 1, 2020. Manuel Balce Ceneta/AP Photo

WASHINGTON—Democrats are pushing to lift the cap on the federal tax deduction for state and local taxes (SALT), but a Brookings Institution study says this would be a handout to the rich.

“Lifting the cap on the SALT deduction would massively favor the rich, with most of the benefit going to the top 1 percent,” Richard Reeves and Christopher Pulliam from the Brookings Institution wrote in a recent report.