Triggered by the Israeli dispute, but here are the real issues

Democratic fissures start to show 

Centrists and liberals are also at odds over lifting a ceiling on the state and local tax (SALT) deduction, which was capped at $10,000 by the Trump tax-cut bill to pay for corporate tax cuts. The ceiling hit blue suburban districts hard, but progressives including Sen. Bernie Sanders (I-Vt.) argue lifting the cap would help wealthy households.

This is a setback for Schumer, who pledged last year that repealing the Republican-enacted cap on SALT deductions would be a top priority if Democrats took back control of the Senate.


A group of House Democrats from New York and New Jersey are warning they may not vote for an infrastructure package if it doesn’t include a repeal of the SALT cap.

Rep. Thomas Suozzi (D-N.Y.) told The Hill in March: “No SALT, no deal.”

Another issue sparking debate within the Senate Democratic caucus is the size of Biden’s infrastructure agenda, which is publicly projected to cost $4.1 trillion but could wind up costing a lot more if all of its elements are scored by the Congressional Budget Office.

“It’s a lot of damn dough, it’s a lot of money,” Sen. Jon Tester (Mont.), a moderate Democrat in a state easily won last year by Trump, said Tuesday. “I don’t think we’re going to be at $4 trillion in the end.”

Tester said while there’s certainly a lot of need for infrastructure investment, Congress should pay for at least half of the cost.

As pointed out many times, the fight over tax base goes back three years, and before that goes back to 2010.  It is an ongoing, not to be resolved issue. 

No one supports infrastructure as it is ludicrous to think Congress will manage that properly over numerous election cycles.

And, the Californians are in this for pension relief, beginning to end that was their aim.

So, no, there is no realistic infrastructure and their best bet is another round of checks or do nothing.  This is all complicated by rollover risk, that is a shitload of rollover and it likely cannot be done without yield curve control which fouls up the pricing functions something horrid. The Swamp is stuck, I suggest they continue to agree on being stuck for another two years.