Legislation fully builds upon efforts to restore State & Local Property Tax (SALT) deduction
WASHINGTON, D.C. – U.S. Senators Bob Menendez, a senior member of the Senate Finance Committee that sets federal tax policy, and Cory Booker (both D-N.J.) today introduced the Securing Access to Lower Taxes by ensuring Deductibility Act or “SALT Deductibility Act” that would repeal the $10,000 federal cap on state and local tax (SALT) deductions. The cap, imposed by the Trump Tax Law of 2017, has disproportionately impacted New Jersey and amounted to a tax hike on thousands of middle class families.
“By repealing the ill-conceived, partisan cap on SALT deductions, the SALT Deductibility Act will provide much-needed tax relief for hardworking, middle class New Jersey families who have essentially been double-taxed. We need to put more money back in their pockets during this challenging time,” said Sen. Menendez. “Allowing property taxes to be fully deducted has been a bedrock principle of our tax code and is commonsense tax policy that rewards states that invest in things like education, public safety, infrastructure and economic opportunity for all. When Republicans jammed through the SALT cap, it unfairly and disproportionately hurt New Jersey taxpayers. It’s time to right that wrong.”
“Hardworking families in states like New Jersey are still bearing the burden of the disastrous Trump tax cuts that gave handouts to wealthy corporations at the expense of the middle class,” said Sen. Booker. “We should be building a fairer tax code that lifts up families, makes it easier for individuals in high cost-of-living states like New Jersey to afford homeownership, and allows communities to invest in education, public safety, and infrastructure.”
The bill is led by Majority Leader Chuck Schumer (D-N.Y.) and builds upon previous legislation Menendez authored and Booker cosponsored in the last Congress to repeal the SALT cap. The SALT Deductibility Act is cosponsored by Sens. Ron Wyden (D-Ore.), Kirsten Gillibrand (D-N.Y), Dick Durbin (D-Ill.) and Tammy Duckworth (D-Ill.). Bipartisan companion legislation has been introduced in the House, led by Reps. Tom Suozzi (D-N.Y) and Tom Reed (R-N.Y.).
A pillar of U.S. tax policy since the Civil War, the SALT deduction allows taxpayers to write-off taxes paid at the state and local level from their federal income tax bill so they won’t be subject to being taxed twice on the same dollar. In addition to helping families avoid double taxation, the SALT deduction supports the ability of communities, cities, and states to raise their own revenues and fund critical investments in public education, infrastructure, social services, and public safety.