Dylan, Jerusalem, and Dara discuss congressional Democrats’ efforts to uncap the state and local tax (SALT) deduction, and how the party found itself proposing a massive tax cut for high-income households. They also dive into the deduction’s stated purpose (encouraging states to spend on social programs) and talk about other programs that could encourage states to invest in health and education. Finally, they examine a white paper showing that domestic violence crimes didn’t increase during the Covid-19 pandemic in 2020.

References:

The state and local tax deduction, explained [Vox]

SALT cap repeal would overwhelmingly benefit high income households [Tax Policy Center]

Reconciliation may deliver a tax cut to the rich [Committee for a Responsible Federal Budget]

5-Year SALT cap repeal would be costliest part of Build Back Better [Committee for a Responsible Federal Budget]

Senators Menendez and Sanders show the way forward on the SALT cap [Institute on Taxation and Economic Policy]

Easy on the SALT: A qualified defense of the deduction for state and local taxes [Daniel J. Hemel, University of Chicago Law School]

Congress can help state and local governments prepare for a rainy day without repealing the SALT cap [Tax Policy Center]

What you don’t know about fiscal federalism can hurt you [Milken Institute Review]

Progressive politics from the ground up [CommonWealth Magazine]

California is making liberals squirm [The New York Times]

Effects of COVID-19 shutdowns on domestic violence in US cities [Amalia R. Miller, Carmit Segal, and Melissa K. Spencer, National Bureau of Economic Research]

One explanation for conflicting reports on domestic violence during the pandemic [Aaron Chalfin, Twitter]

Hosts:
Dylan Matthews (@dylanmatt), senior correspondent, Vox
Jerusalem Demsas (@jerusalemdemsas), policy reporter, Vox
Dara Lind (@dlind), immigration reporter, ProPublica

Credits:
Sofi LaLonde, producer & engineer
Libby Nelson, editorial adviser
Amber Hall, deputy editorial director of talk podcasts

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