“In their 2017 tax bill, Republicans partially closed a tax loophole that mainly affected higher-income people in high-tax areas — i.e., relatively well-off people in blue states. They capped the state and local tax deduction (SALT) people can take when calculating their federal income tax at $10,000. People can still deduct state and local taxes from their federal tax bill, but only up to that point.
Many Democrats — namely, those from states such as New York, New Jersey, and California — want to repeal the SALT deduction cap and go back to the old regime, where people could deduct all (or at least more) of their state and local taxes. They argue the cap unfairly drives up their constituents’ tax bills, might keep their states from implementing more progressive tax regimes on high-income people, and was a vindictive move by the GOP in the first place.”
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“But some Democrats, Republicans, and economists are saying hold the phone.
“The vast majority of the benefits of repealing the SALT cap would go to the people at the very top. It would also be costly — and for that amount, we could finance much more worthy efforts to support American families and workers. We can say we are for a progressive tax code and for fighting inequality, or we can support the SALT deduction, but it is really hard to do both,” said Sen. Michael Bennet (D-CO) in a statement to Vox. When the Senate took up a vote on whether to repeal the SALT cap in December 2019, he was the only Democrat to vote against it.”
“the Senate can’t pass an unlimited number of reconciliation bills; typically Congress passes one per year. Given a legislative backlog in 2020, Democrats were on track to do two reconciliation bills in the near term — one addressing the budget of the 2021 fiscal year, and one for the budget of the 2022 fiscal year.
According to a Schumer aide, his team is now trying to make the case that Democrats would be able to pass up to three budget reconciliation bills this year. In arguments to the Senate parliamentarian, an in-house procedural expert, aides are pushing for a third bill by citing an arcane rule that hasn’t been used before.”
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“Whether Democrats are ultimately able to do this is heavily dependent on the parliamentarian”
“For four decades now, that historic upheaval and the quest for the support of Reagan Democrats has defined American politics, from the rise of Bill Clinton’s “New Democrats”—which Greenberg, as Clinton’s pollster, had a central role in crafting—to George W. Bush’s “compassionate conservatism,” to Barack Obama’s poll-tested evisceration of Mitt Romney’s venture capital experience, to Donald Trump’s white-grievance mongering and tirades against NAFTA. After Obama won Macomb in 2008 and 2012, Trump captured it in 2016 and 2020.
Then something important happened: In leaning too hard into white identity politics—and perhaps being too focused on what he thought Reagan Democrats wanted—Trump accelerated the rise of a new voting bloc that is, in many ways, the mirror image of the Reagan Democrats.
Call them the Biden Republicans.
Like the Reagan Democrats, they’re heavily white and live in suburbs. But where the Reagan Dems are blue-collar and culturally conservative, Greenberg sees the Biden Republicans as more affluent, highly educated and supportive of diversity. Historically, they identified with the Republican Party as their political home. But the leaders who were supposed to fight for them seem to care more about white grievance and keeping out immigrants; seem to care more about social issues and “owning the libs” than about child-care payments and college tuition. They don’t consider themselves Democrats—at least not yet—but they are voting for them, delivering them majorities in the House and Senate, and making Joe Biden just the fourth candidate in the past century to defeat an incumbent president.”
“Here’s the Democratic nightmare: Biden and congressional Democrats pass a few major bills over the next two years but leave the filibuster in place, preventing the passage of major reforms to America’s electoral system. A federal judiciary stacked with Trump appointees strikes down all or parts of many of the laws the Democrats do pass as well as many of Biden’s executive actions, leaving Democrats few permanent policy victories and driving down the president’s approval ratings.
Meanwhile, Republicans use their control of most state legislatures to draw state legislative and U.S. House district lines in ways that are even more favorable to the GOP than the current ones and enact laws that make it harder for liberal-leaning voting blocs to cast ballots. Combine gerrymandering, voting limitations, lackluster poll numbers for Biden and the historic trend of voters rejecting the party of the incumbent president in a midterm election, and it results in the Republicans winning control of the House and the Senate and making even more gains at the state legislative level in November 2022.
Post-2022, Republicans in Congress block everything Biden tries to do, further driving down his approval ratings. Meanwhile, Republicans use their enhanced power at the state level to continue to adopt laws that make it harder for people in liberal-leaning constituencies to vote and harder for Democrats to win in swing states. Then, these laws are upheld by lower courts and a U.S. Supreme Court still packed with Trump appointees. In 2024, Biden (or whomever the Democrats nominate) wins the popular vote but still loses the Electoral College — in part because Republicans have limited Democratic votes in some swing states. A GOP with control of the White House, Senate, House and most state governments in 2025 then effectively creates a system of “minority rule” in which Republicans can keep control of America’s government for decades even if the majority of voters favor Democrats as well as liberal and left-of-center policies.
In this scenario, the Democratic Party is in peril, but in some ways so is American democracy more broadly. So to this camp, Democrats must act aggressively and quickly over the next two years to forestall this outcome, by getting rid of the filibuster as it currently operates (most legislation requires 60 votes to pass in the Senate) and enacting an aggressive “democracy agenda.” This is a pro-democratic (small “d”) agenda in many ways, particularly in giving residents of Washington, D.C., representation in Congress and enhancing protections of the right to vote for Black Americans who live in GOP-dominated states. But it’s also clearly a pro-Democratic agenda (big “D”) in that it would, for example, add the two senators from D.C., who would almost certainly be Democrats.
Pfeiffer describes whether the Democrats get rid of the filibuster in the next two years as “the decision that will decide the next decade.” He argues that keeping the filibuster may be effectively “a decision to return to the minority and stay there for at least a decade.”
“The door is closing quickly in terms of us staying a functioning democracy. We have no time to waste,” said Meagan Hatcher-Mays, director of democracy policy at Indivisible. “Democrats have been handed this power to save it. We don’t have two years. We have a year. The window to actually get things done is really closer to 10 months.””
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“Democrats would need every Democratic senator on board to get rid of the filibuster, so these members are super-important. And over the last few months, Manchin and Sinema have said they are strongly opposed to getting rid of the filibuster. Longtime senators like Feinstein have hinted in the past that they are wary of such a move too.
Part of this opposition to getting rid of the filibuster reflects ideological differences — Manchin in particular is more conservative than most (if not all) congressional Democrats. So he probably isn’t dying to get rid of the filibuster to vote for a $15 federal minimum wage, for example, because it’s not clear he favors that idea anyway.
But this bloc also disagrees with the this-is-an-emergency camp about the state of American politics right now. Feinstein is fairly liberal on policy issues. But she, like Manchin and Sinema, has suggested she wants to work in a Senate that is not hyperpartisan and seems to believe that is possible. In the view of people in this camp, the Republican Party is not completely dominated by an anti-democratic wing that won’t work with Democrats. So members in this camp view getting rid of the filibuster and other more aggressive moves as not only unnecessary but potentially really bad — making the Senate and Washington overall even more gridlocked and polarized than they already are.”