
Like most Long Islanders, I was outraged when the SALT deduction was curtailed to a $10,000 limit under Trump’s “Tax Cut and Jobs Act.”
It was a cynical move, aimed at the heart of Blue states and their tax structure. I’ve been following the issue as President Biden’s tax proposals evolve, and the latest reading is the threshold for the SALT limit will at best, be raised, but not eliminated.
I’m sure we all know people who would be considered “middle” wage earners snared in this tax trap. That would be a concern to Mr. Biden and his stated policy stance.
When questioned by the House Committee on Financial Services, Treasury Secretary Janet Yellen would only say she would “work” with Congress on the matter, but expressed no advocacy for outright repeal. But at this point, it appears that those who are paying upwards of $25,000 in property tax alone, much less state taxes, will have their tax hike kept in place.
And nothing could be fairer.
I had been evolving on this component of the new tax regime Mr. Biden will put in place, and as I’ve written before, his proposed revenue raisers are quite modest, given the damage done by successive tax cuts and a twice obliterated economy.
But what really solidified my opinion was a recent piece in The Atlantic about private schools and the lengths parents will take to get their children into places like the Sidwell Friends School, where most of the sitting President’s school-age children attend, going back to Richard Nixon, probably the only real Quakers to attend what is called a Quaker academy.
The piece was so redolent of the fidgety anxiety of Long Island parents in their quest to get their children into the “better” schools, it is excellent public policy not to allow massive tax deductions to facilitate what is merely the perpetuation of class privilege, not a “better” education.
These parents are buying access and social status, not learning, and there is no justifiable reason for subsidizing it.
The true genius of the piece goes to exposing the stunning hypocrisy of the schools, the teachers, and their parents. What they’ve been allowed to do is set up, with massive public funding, a private school system that does nothing but fossilize an already sclerotic economic pyramid.
So if Great Neck is Sidwell, Syosset is Horace Mann, Jericho is Dalton, and so on. All built on public funding fed by the most regressive tax system deployed in America, right here on Long Island.
It has another hidden purpose: it allows the parents to indulge their privilege and discharge their guilt in one fell swoop. It’s a transcendent experience for them.
So, if this is the way things are, well, I say stick it to ‘em and stick to ‘em good. Let them pay double for trying to ablate their anxieties. If the school boards, mostly staffed by the same obnoxious people you find on condo homeowners associations and co-op boards, want to wallpaper their schools in tinsel, I don’t think it’s good public policy to subsidize their actions.
If I am Senator Schumer or Representative Tom Suozzi, I would take a compromise of a SALT cap of $20,000 to $25,000 and call it a victory for der mittelshichten.
I know many Long Islanders will consider this bizarre, but in the normal world, you’re not middle class if you earn $400,000 a year and that Aston Martin is just achingly inches away from your grasp. Shocking, I know, but once you cross the Hudson River, this nation is filled with people with strange customs.
I would be remiss in not ending this piece with the reminder that one of this newspaper’s most prominent “progressive” voices once bemoaned the inequity of the Great Neck Public School System not getting nearly as much in-state aid as the Roosevelt School System.
I tell you, injustice is everywhere.
Donald Davret
Roslyn