WASHINGTON, DC — U.S. Congressman Josh Gottheimer (NJ-5) Tuesday testified before the House Ways and Means Committee to continue fighting for the reinstatement of one of the most important issues for New Jersey’s Fifth District: the State and Local Tax (SALT) deduction.
Gottheimer noted that the 2017 partisan Tax Hike Bill had a devastating impact on the Fifth District, which gutted the SALT deduction with a disastrous $10,000 cap, sharply limited New Jersey’s property and state income tax deductions, and imposed a massive tax hike on Jersey’s families and businesses. The SALT deduction dates back to 1913.
“Four years ago, a double taxation grenade was lobbed at New Jersey and other high-tax states by the Moocher States in the partisan 2017 Tax Hike Bill. The Red States made out like bandits and got a bunch of tax relief for themselves — and we in Jersey paid the price for it with federal tax hikes,” Gottheimer said. “It’s clear that removing the SALT cap has broad bipartisan support. The House has already passed the SALT cap repeal three times, including as part of two previous COVID-19 relief packages in May and October of last year. It’s time for both sides to work together — Democrats and Republicans — to get this done. It’s just common sense. Working together, we can reinstate SALT, cut taxes, and give a tax break to our hardworking, middle-class families, helping more Jersey residents recover economically from this pandemic.”
Recently, Gottheimer helped lead the introduction of new bipartisan legislation — the SALT Deductibility Act — which now has more than 100 cosponsors, to allow taxpayers to fully deduct their state and local taxes on their federal income returns.
Gottheimer has also led a bipartisan initiative from the full New Jersey House delegation to formally request that Congressional leadership repeal the SALT deduction cap, and that Treasury Secretary Janet Yellen support full reinstatement of SALT in the Biden Administration’s negotiations with Congress.