Leading the Entire New Jersey House Delegation in Pushing for State and Local Tax (SALT) Deduction Cap Repeal in Next COVID-19 Package & for Biden Administration Support
Above: Gottheimer at the Paterson U-Haul today, announcing steps to fully restore the SALTdeduction and cut taxes, to combat residents moving out of New Jersey in droves.
NORTH JERSEY — Today, U.S. Representatives Bill Pascrell, Jr. (NJ-9) and Josh Gottheimer (NJ-5) announced that they are leading the full New Jersey House delegation in formally requesting that Congressional leadership include the repeal of the SALT deduction cap in the next COVID-19 relief legislative package, and asking newly confirmed Treasury Secretary Janet Yellen to support full reinstatement of SALT in the Biden Administration’s pandemic relief negotiations with Congress.
The State and Local Tax (SALT) deduction — which dates back to 1913 — was gutted in the 2017 partisan Tax Hike Bill by a disastrous $10,000 cap on the deduction nationwide. Now, residents are moving out of New Jersey in droves.
Today’s announcement, held at the Paterson U-Haul facility, included Rep. Josh Gottheimer (NJ-5), the Office of Rep. Bill Pascrell, Jr. (NJ-9), Paterson Mayor André Sayegh, and New Jersey Realtors President Jeff Jones.
According to U-Haul’s 2020 Migration Trends report, New Jersey ranked third highest in the country of net migration U-Haul trucks leaving last year, an indicator of families and businesses leaving the state. According to United Van Lines’ 2020 National Movers Study, New Jersey ranked as the top state in the nation for outbound migration last year, a spot New Jersey has held for the prior three years.
“Ever since the ruby red Moocher States whacked New Jersey with the 2017 Tax Hike Bill, I’ve been fighting to fully reinstate our SALT deduction, to finally cut taxes for North Jersey families, and help more of our residents to stay here in Jersey — especially now as we’re still grappling with the COVID-19 public health and economic crisis. While our residents and state are hurting, it’s time we fought back against the Moocher States who don’t pay their share,” said Rep. Josh Gottheimer (NJ-5). “Today, the entire New Jersey delegation is requesting that Congressional leadership include a full repeal of the SALT deduction cap in our next COVID-19 relief package, and we’re asking newly confirmed Treasury Secretary Janet Yellen to support this critical effort in President Biden’s negotiations with Congress. It’s time to finally get this done.”
“Repealing the odious SALT cap remains one of absolute top priorities in the 117th Congress,” said Rep. Bill Pascrell, Jr. (NJ-9). “The SALT cap was enacted solely by the Republicans in their pathetic 2017 tax scam bill and New Jersey has been paying the price ever since. Fixing SALT will provide critical relief to middle class taxpayers as well as our state and local governments. Being squeezed like lemons and bled dry by this pandemic, state governments will face savage cuts to critical public services without help. I look forward to working with President Biden, Secretary Yellen, and my House colleagues to finally repeal this unfair tax provision.”
The SALT deduction has historically strengthened state and local government functions, including public health programs, support for low-income residents, and emergency response services. According to a recent report released by the Rockefeller Institute of Government, New Jersey is among the top states in the country that pays more into the federal government than we get back. Repealing the SALT cap would provide critical relief that New Jersey needs as the state continues to fight back against the COVID-19 crisis.
The letters to House Speaker Pelosi, Senate Majority Leader Schumer, and Treasury Secretary Yellen, led by U.S. Reps. Bill Pascrell, Jr. (NJ-9) and Josh Gottheimer (NJ-5), are also cosigned by Donald Norcross (NJ-1), Jeff Van Drew (NJ-2), Andy Kim (NJ-3), Chris Smith (NJ-4), Frank Pallone (NJ-6), Tom Malinowski (NJ-7), Albio Sires (NJ-8), Donald Payne, Jr. (NJ-10), Mikie Sherrill (NJ-11), Bonnie Watson Coleman (NJ-12).
Read the New Jersey delegation’s letter to Congressional leadership HERE.
Read the New Jersey delegation’s letter to Treasury Secretary Yellen HERE.