Gottheimer introduces bill to eliminate SALT marriage penalty, target relief for high-tax states

NEW JERSEY — U.S. Rep. Josh Gottheimer on Tuesday announced new legislation aimed at eliminating the “marriage penalty” in the state and local tax (SALT) deduction, a move he said would provide relief for families, particularly in high-tax states like New Jersey.

The proposed measure, titled the Tax Cuts, Not Penalties, for Married Couples Act, would double the SALT deduction cap for married couples filing jointly, ensuring they are not held to the same limit as single filers.

“As you know, I never back down from a fight, and when it comes to expanding SALT and getting hard-earned tax money back to hardworking Jersey families, the fight isn’t finished just yet,” said Rep. Josh Gottheimer (NJ-5). “Under current law, a single filer and a married couple filing jointly get the same SALT cap. It defies common sense. My bill comes back to a simple idea: if you file jointly, you should receive a joint deduction, not be treated the same as a single filer.”

“Today, I’m introducing new, commonsense legislation to fix this problem once and for all, the Tax Cuts, Not Penalties, for Married Couples Act. It will get rid of the marriage penalty on SALT, said Gottheimer. “Our bill says something very simple: if you file jointly, you should double the deduction individual filers get for their SALT deduction.”

Currently, both single filers and married couples filing jointly face roughly the same SALT cap — about $40,400 — despite many married households having two incomes and higher property taxes. Gottheimer’s proposal would raise the cap for married couples to $80,800.

The announcement comes as many families continue to feel the effects of the 2017 federal tax law that imposed limits on SALT deductions, a policy Gottheimer opposed and has worked to reverse.

Gottheimer continued, “Even still, those tax bills are U-G-L-Y, ugly. And writing those checks to the tax man feels like getting smacked in the face with yet another surprise bill on your kitchen table. I told you years ago, when I first started my fight to restore SALT, that I wouldn’t stop fighting until we got all of our SALT deduction back.”

The congressman said the legislation is part of ongoing bipartisan efforts to restore the full SALT deduction and reduce the tax burden on families.

“Now, on Tax Day eve, we can use the next one to take another critical step on the way to fully restoring the SALT tax deduction. Because 25% of taxpayers in New Jersey are sill seeing higher taxes since 2016 — even with the increase to $40,000,” said Gottheimer. “I mean, that’s ridiculous. It defies common sense. Why would two people who happened to be married get the same SALT deduction as one person?”

Gottheimer concluded, “This is about teachers, cops, firefighters, nurses, and the men and women of labor. It’s about families sitting around the kitchen table, paying bills, and getting hit with thousands of dollars more in taxes because they’re being taxed twice.”

He said eliminating the marriage penalty is a commonsense step that could be included in future federal tax legislation and emphasized that restoring the SALT deduction remains a priority for millions of taxpayers, including nearly 3 million New Jersey residents.