This plan could really cut taxes for many New Jersey residents
💰 A big tax break for many NJ residents could be coming
💰 A NJ congressman is leading a bipartisan push to restore SALT
💰 It was in effect for a century before being cut during the Trump administration
Six years ago New Jersey residents lost the State and Local Tax (SALT) deduction, and the result was higher taxes for millions of filers.
But now U.S. Rep. Josh Gottheimer, D-N.J. 5th District, has introduced a measure to have the SALT deduction reinstated.
He said a bipartisan group of 47 lawmakers banded together to support the SALT Deductibility Act.
A significant tax deduction
“It will allow families to fully deduct their state and local taxes, their property taxes and state income taxes on their federal income returns before they pay those taxes,” he said.
Gottheimer said the idea is “to lower taxes for our families, to stop double taxation and make life more affordable for hard-working middle-class families here in Jersey and around the country.”
This deduction had been in place for a century before the law was changed in 2017.
They stuck it to us, he says
“The red states stuck it to us. They gutted the State and Local Tax deduction, capped it out at $10,000 and that meant taxes went up for many of our families.”
Congress introduced previous bills to restore SALT but Republicans blocked those measures in the U.S. Senate. Gottheimer believes this time will be different.
“We have more than 45 co-sponsors already and we just introduced the bill, including eight Republicans. We expect this number to grow," he said.
It's a middle-class issue
Gottheimer said “the State and Local Tax deduction is a middle-class issue, it’s not just something for the well-to-do. Restoring it will get more dollars back into the pockets of hard-working families.
He said that when SALT is restored, nearly 3 million state residents, about three-quarters of which earn incomes of no more than $216,000, will get relief.
He noted the average SALT deduction in Bergen County before it was eliminated was more than $24,000, so when the deduction was knocked down to $10,000, “you can see why a lot of people’s taxes went up.”
He said having the SALT deduction is very important for a state like New Jersey.
“I mean this isn’t Oklahoma where the median property tax is $1,600, or Alabama where the median property tax is $740.”
“When you stop allowing people to deduct for SALT, a lot of people will leave because their taxes went up, it’s less affordable," he said. "That’s why it’s important we fight back against this.”
New Jersey cosponsors of the measure are U.S. Reps Rob Menendez, D-N.J. 8th District; Chris Smith, R-N.J. 4th District; Tom Kean Jr., R-N.J. 7th District; Frank Pallone, D-N.J. 6th District; Bonnie Watson Coleman, D-N.J. 12th District; Mikie Sherrill, D-N.J. 11th District; Andy Kim, D-N.J. 3rd District; Donald Payne, D-N.J. 10th District; and Donald Norcross, D-N.J. 1st District.
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