The political campaign arm of the Heritage Foundation said Wednesday it will spend $1 million on ads slamming vulnerable Democrats for supporting a provision that raises the cap on state and local tax deductions in President Biden’s social welfare bill.
Heritage Action for America said the ads, which characterize the change as a giveaway for the rich, will run digitally and on television, and target Reps. Carolyn Bourdeaux of Georgia, Cindy Axne of Iowa, Jared Golden of Maine, Elissa Slotkin of Michigan and Susie Lee of Nevada.
The so-called SALT deduction allows individuals to write off a portion of their annual state and local taxes. The lucrative deduction is used by residents from predominantly Democratic coastal areas, where the state and local tax burdens are especially high.
Former President Trump’s signature 2017 tax overhaul capped the deduction to $10,000 annually. House Democrats have included language in Mr. Biden’s social welfare bill raising the cap to $80,000.
Democrats from impacted states say they need the relief because their taxpayers invest heavily in things like education, but Republicans say it is a giveaway to coastal elites.
“Nancy Pelosi slipped a big tax break for her wealthy friends into Biden’s bloated spending bill. The rich get tax breaks on their Hamptons beach houses and Malibu mansions. And you pay the bill,” the Heritage ad says. “With crushing taxes on small businesses and skyrocketing inflation, raising prices for gas and groceries, the coastal elites get an insider sweetheart deal on their taxes, and you pay more.”
• Haris Alic contributed to this report.