WASHINGTON, D.C. – Today US Congressman Josh Gottheimer (NJ-5) joined a bipartisan group of six other members of the House to introduce the SALT Deductibility Act, a bipartisan law designed to fully restore full state and local tax deduction (SALT). The proposal would allow taxpayers to fully deduct their state and local taxes from their federal income returns, end double taxation, and give families in northern New Jersey a tax cut. In 2017, the withdrawal was gutted by the Moocher states and capped at $ 10,000, resulting in a tax hike for many middle-class families.
The limitation on the SALT deduction resulted in double taxation by taxing taxes already paid. In areas with high cost of living, the cap has further accelerated a race to the bottom that drives families to other states, often subsidized by the states that have left their new residents. This leaves middle and low income taxpayers with pockets in hand to pay for school, police, fire services, and other vital state and local services.
The lifting of the $ 10,000 cap on the SALT deduction is supported by both parties in the House of Representatives. Legislation is led by Congressman Tom Suozzi (D-NY). The original co-sponsors of the legislation include Congressman Brad Schneider (D-IL), Congressman Young Kim (R-CA), Congressman Josh Gottheimer (D-NJ), and Congressman Chris Smith (R-NJ), Congressman Andrew Garbarino (R-NY) and Congressman Mondaire Jones (D-NY).
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"Since New Jersey got hit by the 2017 tax bill, I've been struggling to fully reintroduce our SALT deduction and finally lower taxes for families in North Jersey." said Congressman Josh Gottheimer. "With this new bipartisan legislation, both sides of the aisle are coming together to restore a tax break for our hard-working, middle-class families and help more Jersey residents through this pandemic. It is time to finally make that happen."
"The SALT deduction cap has been a severe blow to New York families." said Congressman Tom Suozzi. “The full SALT drain needs to be restored. Without the full SALT deduction, families will be leaving New York and the last thing we need in the midst of the health and economic devastation of COVID-19 is to lose our residents and taxpayers. Congress must act immediately. "
“The cap on SALT deductions has harmed families and communities in Illinois. Forcing Americans to pay federal taxes on taxes they have already paid to state and local governments is double taxation and wrong. In my Illinois district, about 42 percent of filers use the SALT deduction, and the average deduction is significantly higher – almost twice the new cap. The SALT cap is not fair to the American middle class, and I am proud to take the lead with Rep. Suozzi. " said Congressman Brad Schneider.
“The SALT deduction cap has put a strain on our California workers, families, and businesses as our state continues to have some of the highest taxes in the nation. This bill simply removes that cap on SALT deductions so that Californians can keep more of their hard-earned dollars and make life more affordable. " said Congresswoman Young Kim. “I came to Congress to develop sensible policies and do things in a non-partisan way. I am proud to deliver on my promise to my constituents with the introduction of the non-partisan SALT Deductibility Act today, and I will continue to do everything I can to improve the life of my community in California's 39th district. "
"The arbitrary, unfair SALT caps are an unacceptable additional burden on New Jersey taxpayers." said Congressman Chris Smith. “Compared to what we're getting back, New Jersey is already paying the federal government more than our fair share. New Jersey residents who have suffered so much and paid so much taxes need and deserve this relief. "
“Donald Trump cut taxes on billionaires and corporations and paid them on the backs of hardworking families in Westchester and Rockland counties, where we pay the highest property taxes in the country"Said Congressman Mondaire Jones. “That ends today. Restoring the SALT deduction is a necessary first step in creating a just tax system with money back in the pockets of the working people. "
“The SALT cap unjustly punishes Long Islanders and has a devastating effect on New York. The ability not to be able to deduct state and local income taxes is a double taxation case. This is the last thing my constituents need during a global pandemic. " said Congressman Andrew Garbarino. "I urge a full re-establishment of the SALT withdrawal – Long Islanders deserve to be treated fairly and similarly to the rest of the country."
"In the midst of a pandemic and economic crisis that requires real relief and reform, I encourage Congress to look into the Trump administration's secret cap on state and local tax deductions that harm those who live in high cost of living areas." said Illinois Governor JB Pritzker. “The Trump SALT Cap has broken a centuries-old relationship between federal, state, and local taxes, and restoring that balance – thereby protecting taxpayers from paying taxes on their taxes – is a critical aspect of the economic relief and tax package This nation needs revitalization urgently. "
In addition to bipartisan support in the House of Representatives, lifting of the SALT withdrawal is supported by heads of state and several national leaders, including:
- US Mayors' Conference
- National Association of Counties
- National League of Cities
- International Federation of Firefighters
- National Association of Brokers
- American Federation of Teachers
- National educational association
- National Association of Police Organizations
"On behalf of the mayors of the country, I want to express our strong support for securing access to lower taxes through the SALT Deductibility Act. This bipartisan proposal would increase the $ 10,000 limit on federal tax deductions for state and local Abolishing Taxes Before the cap in the Tax Reduction and Employment Act of 2017 came into effect, all state and local taxes were deductible, recognizing the autonomy of state and local tax systems and helping taxpayers avoid double taxation. Since its inception, the cap has been detrimental in At a Time , in which the COVID-19 pandemic has created tremendous troubles for state and local budgets, it is undermining the ability of state and local governments to increase the revenue they need to support critical public service, " said Tom Cochran, CEO and Executive Director of the US Mayors' Conference.
“The counties are at the forefront of the COVID-19 pandemic, supporting nearly 1,000 hospitals, more than 1,900 health authorities and other services essential to the safety and wellbeing of residents. The human and financial implications of addressing this health and economic emergency are astounding. " said Matthew Chase, executive director of the National Association of Counties. “Removing the cap on state and local tax withholding would strengthen the ability of our counties and communities to provide essential public services such as emergency response, public health and infrastructure. We welcome representatives Suozzi, Garbarino, M. Jones, C. Smith, Gottheimer, Y. Kim and call for this important piece of legislation to be passed across parties. "
"Cities and villages are being boosted by the introduction of the Law on Securing Access to Lower Taxes by ensuring the Withholding Law, which strengthens an important instrument of local funding: the state and local tax deduction (SALT)." said Clarence Anthony, CEO and Executive Director of the National League of Cities. “The SALT deduction is critical to local governments as it prevents additional burdens for millions of middle class families and helps cities increase the revenues needed to invest in infrastructure, public safety and education. Particularly now during the COVID-19 pandemic, the proposed lifting of the $ 10,000 SALT withdrawal cap will help communities continue to support America's efforts for economic recovery. "
“By removing the cap on state and local tax deductions, fire departments can have more budget freedom to focus on public safety needs. Current restrictions on SALT deduction can result in significant degradation of service and adversely affect public safety in communities across America. " said Harold Schaitberger, General President of the International Association of Fire Fighters. "I would like to thank representatives Suozzi and Schneider for their guidance on this important issue and I look forward to the complete lifting of the SALT cap."
"The 1.4 million members of the National Association of REALTORS® thank you for introducing the SALT Deductibility Act, a bill to remove state and local tax deduction restrictions (SALT)." said Charlie Oppler, president of the National Association of Realtors. “This legislation would greatly increase the tax incentives for buying and owning homes for millions of Americans.
“Too many working families hurt. The COVID-19 pandemic has exacerbated the apparent inequalities in our economies – from housing and food insecurity to access to health care – and state and local governments are struggling as revenues decline to get the services and support for which many of our communities are responsible trust. Eviscerating the Trump era in terms of state and local income tax deductions is another blow to these families who are already struggling, and I salute Rep. Suozzi for leading efforts to lift the SALT cap and introduce the SALT Withholding Act . Families living in states and communities that invest in public services – including education, health care, and public safety – should not face unfair federal tax penalties. It's been a long time since we raised the SALT cap and ended the financial troubles that working families cause. " said AFT President Randi Weingarten.
NEA On behalf of our 3 million members and the 50 million students they serve, the National Education Association offers its strong support for the SALT Deductibility Act. This legislation removes the harmful cap on the SALT withholding that was included in the Tax Reduction and Employment Act of 2017, which threatened the ability of states and municipalities to fund essential public services, including schools. We applaud the efforts of Representatives Suozzi and Schneider to ensure that all students have the opportunity to receive a comprehensive curriculum and support services that will fuel their success, and we urge Congress to approve the SALT Deductibility Act. " said Marc Egan, director of government relations, National Education Association.
“In this country, law enforcement officers go to work every day to achieve one goal: the safety of their communities. To accomplish this mission, they receive support from the communities they serve, as public safety budgets across the country largely come from state and local property, sales, and income taxes – essential investments that give our first responders the tools they can need to get the job done. The State and Local Tax Withholding (SALT) has helped support these important investments at the state and local levels. In addition, our members are not just first responders. They are also citizens of the communities in which they work. The fact is, capping the SALT deduction represents a significant tax hike for many homeowners, including law enforcement officers. The cap needs to be lifted – for homeowners, for our communities, and for the first responders who work every day to protect these communities. NAPO thanks representatives Suozzi, Schneider, Garbarino, Gotthiemer, Mondaire Jones, Christopher Smith and Young Kim for their guidance, and we look forward to working with them to see the cap lifted. " said Bill Johnson, executive director of the National Association of Police Organizations.
"The counties have worked hard to maintain essential services while protecting local taxpayers, but that work has been undermined by the disastrous federal suspension of state and local tax deductions." said NYSAC President Jack Marren. “The counties fully support this legislation and applaud Congressman Suozzi and members of the New York Delegation for spearheading efforts to restore fairness to tax law and the hardworking families in New York State who are already sending far more taxes who gave the federal government the necessary relief when we come back. "