WASHINGTON – Senate Democrats this morning blocked an amendment by Sen. Chuck Grassley (R-Iowa) to their partisan tax hike bill that would have helped middle-class families and students better cope with the hike prices and falling real wages caused by a 40-year high inflation.
“My amendment made small but common-sense adjustments to our tax policies that would have brought real relief to American families struggling with the pressures of inflation and recession. The Democrats had the opportunity to give American families new tools to deal with the rising prices caused by their reckless spending agenda. Unfortunately, they chose not to.” Grassley said.
Child tax credit
Dependent care credit
Education tax credits and deductions
Student loan interest deduction
The amendment also mitigates the erosion of savings caused by rising inflation. Specifically, the amendment:
Prevents taxation of the first $300 ($600 for married filers) in interest income
Doubles the income limit for the zero-rate tax bracket for long-term capital gains and dividend income.
The amendment also extends by one year the cap on state and local tax deductions, which limits tax subsidies for wealthy individuals in high-tax states.
All Democrats voted against this amendment.