North-JerseyNews.com

OPINION: North Jersey Dems Must Deliver in Securing Elimination of SALT Cap

The ability to pass legislation comes down to a basic equation of do you have the numbers to exert leverage for your desired result.

North Jersey legislators sit at that nexus with the ability to flex their power to remove the cap for the state and local tax (SALT) deduction passed into law in 2017 by Congressional Republicans.

Let’s be blunt here—it’s put up or be voted out time for North Jersey lawmakers who have championed this issue over the last four years. 

The issue is at the forefront in New Jersey as President Joe Biden’s American Jobs Plan uses  tax reform measures to pay for the $2 trillion proposal. This has stirred lawmakers such as Reps. Josh Gottheimer, Bill Pascrell, Mikie Sherrill and Tom Malinowski to demand the repeal of the SALT cap at $10,000.

I have said “No SALT, no dice.’ If they are going to change the tax code, they are going to have to include SALT,” stated Gottheimer in a recent interview with North-JerseyNews.com. “I support the American Jobs Plan with a big line in the sand (that it must reinstate) the state and local tax deduction.” 

Make no mistake, this is not just a New Jersey issue. Gov. Phil Murphy is part of an eight state coalition calling for the cap to be rescinded and Gottheimer is co-chairing a bipartisan SALT Caucus that features New Jersey House Republicans Jeff Van Drew and Chris Smith as well as lawmakers from both sides of the aisle representing New York, California, Maryland and Illinois among others.  

And that is where the leverage comes into the picture. Due to the slim majority in the House and a 50-50 split in the Senate, the SALT Caucus has the numbers to stall any tax reform that does not include the elimination of the cap. 

This is the moment in time for Democrats who have campaigned on this issue since 2017 to get the relief for taxpayers in New Jersey they have promised. It is time to deliver real tax relief to residents of the Garden State. 

5 comments

  1. Those of us who already pay high state and local taxes should not be doubly penalized by the current cap on deducting the amount of those taxes in excess of $10,000 on their Income Tax forms.

  2. Troubling issues with SALT limitation: Why is there a marriage penalty? Singles get a $10,000 deduction cap while married couples get effectively $5,000 per person. Why are taxes paid to support local police and schools not deductible while taxes paid to foreign governments for offshore investments are treated as 100% tax credits which is a far more generous treatment than a simple deduction?

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