Speaker of the House Nancy Pelosi and House Democrats introduced Tuesday the text to their $3 trillion coronavirus relief package, which includes a massive tax break for the rich.
According to reports and the text, the “Heroes Act” gives $100,000 on average to people who make more than $1 million a year. The House Democrats’ 1,815-page package repeals the $10,000 state and local tax deduction (SALT) cap, which allows taxpayers in high-tax states to deduct local tax payments on federal tax returns.
A full repeal fo SALT would give tax refunds to an estimated 13 million American households — most of which earn at least $100,000 a year, according to the New York Times. It is estimated that a repeal of SALT would reduce federal revenues by around $77 billion a year, with those making over $1 million a year receiving about $40 billion, the NEw York Times reported.
Many Twitter users weighed in on the Democrats’ new relief bill:
— Matt Stoller (@matthewstoller) May 12, 2020
CRFB: One of the tax cuts Nancy Pelosi included in her “Heroes Act” gives ~$100K on average to people who make more than $1 million a year. https://t.co/ab781vco1m
— Steven Dennis (@StevenTDennis) May 12, 2020
Just half of American adults have jobs right now.
Pelosi is using this moment to push for tax breaks for the rich. https://t.co/QkfD7bd8mp
— Vince Coglianese (@VinceCoglianese) May 12, 2020
This comes as Democratic leadership canceled the House of Representatives’ plans to return to Washington, D.C. on April 28, just one day after Democrats made the announcement. According to Democratic Maryland Rep. Steny Hoyer, the Capitol physician advised them not to return amid a rise in coronavirus cases in the Washington area. (McConnell Says Senate Will Be In Session Monday After New Guidance — House Will Remain Out Of Session)
“We made a judgment that we will not come back next week but that we hope to come back very soon,” Hoyer said. (RELATED: House Cancels Plan To Return Next Week One Day After Making Announcement)
House Minority Leader Kevin McCarthy criticized Democrats on Monday for refusing to return to the Capitol in order to pass coronavirus legislation as businesses and workers across the U.S continue to be affected by the virus.
Meanwhile, the Senate has remained in session and is working together with the White House on passing new legislation to help combat the effects of coronavirus.