With Tax Day Around the Corner, Gottheimer Announces New Bipartisan Legislation to Fight Back & Reinstate SALT Deduction

Apr 11, 2019
Press

Gottheimer calls for lower taxes to stop outmigration of families and businesses

Above: (left to right) Ridgewood Moving Services President Cindy Myer, Randy Ketive, New Jersey Realtors President Ilene Horowitz, Congressman Gottheimer, NJ Society of Certified Public Accountants Ralph Albert Thomas, Mahwah Councilwoman Janet Ariemma, and Mahwah Councilwoman Michelle Crowe Paz stand with Gottheimer as he announces bill to reinstate SALT

MAHWAH, NJ — On Thursday, April 11, 2019, U.S. Congressman Josh Gottheimer (NJ-5) unveiled new bipartisan legislation that would reinstate the State and Local Tax (SALT) deduction at Ridgewood Moving Company alongside realtors and CPAs in Mahwah.

The legislation, which will be introduced with Republican Congressman Lee Zeldin (NY-1) in the coming weeks, will remove the $10,000 cap on SALT deductions implemented by last year’s Federal tax bill. The legislation is the only federal bill that will fully reinstate SALT, will be fully paid for, and will not raise individual or corporate tax rates.

“I’m here today, on the heels of Tax Day, to let Jersey taxpayers know that there are a bunch of us in Washington, who are working across the aisle, to fight back against the Moocher States. Fighting to end double taxation, to restore the State and Local Tax Deduction, deduction, and to cut taxes for Jersey. When I return to D.C., I will be introducing the “Cutting Local Taxes by Reinstating SALT Act,” with the help of my Republican colleague from New York Congressman Lee Zeldin. It’s bipartisan, it will fully reinstate SALT, end double taxation – and cut taxes for Jersey, without raising any other individual or business rates. The bipartisan “Cutting Local Taxes by Reinstating SALT Act,” is unique in that it is the only bill that will fully reinstate SALT, will be fully paid for, and will not raise individual or corporate tax rates. Let’s get it passed and get these moving trucks coming into our state with families – not packed up and headed out.” said Congressman Josh Gottheimer (NJ-5).

The average tax payer in Bergen County claimed $24,783 in State and Local taxes. In Sussex County, the average taxpayer claimed $14,267. In Warren County, $12,588 was the average amount claimed, and in Passaic County the average taxpayer claimed $14,714.

Gottheimer is also working on legislation allowing New Jersey towns and their residents to utilize the charitable tax deduction that 33 other states, mostly red states, have been utilizing for decades now.

Last year, after NJ passed legislation allowing for towns to set up charitable funds, the Internal Revenue Service (IRS) issued provisional rules limiting the state’s ability to offer tax relief.  Towns like Fair Lawn in New Jersey passed a resolution in favor of setting up a charitable fund, but, under the IRS’s proposed new rules, cannot move forward with their plans.

Video from the event can be found here.

Gottheimer’s remarks as prepared for delivery are below:

Thank you, Cindy Meyr of Ridgewood Moving Services for hosting us and telling the stories of so many of your clients, who have been moving away in droves since they gutted the State and Local Tax Deduction – and sent taxes up here in northern New Jersey.  As I know Cindy agrees, we’d both rather her business grow thanks to more families moving into our state – than moving out. I know that Ilene and the realtors are seeing this, too.

But, unfortunately, according to all studies, that’s just not the case.  Too many Jersey families, millennials and businesses are moving out – according to a recent study, twice as many people moved out of New Jersey in 2018 as moved in.  The number one state in the nation for outmigration. Not exactly something you put on a bumper sticker.. And with taxes due in just a few days, the reality of the Tax Hike Bill – and the impact it’s had on so many people here in Jersey – is setting in. And it’s not a pretty picture.

Here in Bergen, the average taxpayer claimed $24,783 in State and Local Taxes – more than half of which is now subject to double taxation under the new law. In Sussex County, the average taxpayer claimed $14,267.  The same for Warren and Passaic Counties. So, when you consider that the new cap is $10,000, my District is facing double taxation on April 15th – and will now be paying higher federal taxes than before. It’s outrageous and it’s making living here and doing business here just too expensive. Just ask the CPAs.

The New York Times reported that 11 million tax filers this tax season won’t be able deduct $323 billion in state and local tax payments that they previously could. It’s offensive.

Just this week, we saw new polling saying that New Jersey families think they are overtaxed. The Rutgers-Eagleton poll found that most believe their taxes are too high, with 79 percent complaining about property taxes. 81 percent of respondents said they are somewhat or very dissatisfied with their government’s efforts to address the cost of living and affordability.  Not exactly a recipe to attract and keep jobs and families here.

I’m here today, on the heels of Tax Day, to let Jersey taxpayers know that there are a bunch of us in Washington, who are working across the aisle, to fight back against the Moocher States. Fighting to end double taxation, to restore the State and Local Tax Deduction, deduction, and to cut taxes for Jersey. When I return to D.C., I will be introducing the “Cutting Local Taxes by Reinstating SALT Act,” with the help of my Republican colleague from New York Congressman Lee Zeldin. It’s bipartisan, it will fully reinstate SALT, end double taxation – and cut taxes for Jersey, without raising any other individual or business rates.

The bipartisan “Cutting Local Taxes by Reinstating SALT Act,” is unique in that it is the only bill that will fully reinstate SALT, will be fully paid for, and will not raise individual or corporate tax rates.  Let’s get it passed and get these moving trucks coming into our state with families – not packed up and headed out.

Just as a quick reminder, the double taxation grenade last Congress was lobbed at New Jersey and New York by the Moocher States. The Red States made out like bandits and got tax relief for themselves – and we in Jersey paid for it.

In fact, the only way they footed the bill was to gut the State and Local Tax Deduction, capping it at $10,000 — imposing a massive Tax Hike on Jersey families and businesses.  They literally stole more than $668 billion dollars out of our pockets here in the SALT states.

It’s been a huge windfall for the “Moocher States,” those like Mississippi and Alabama, that pay far less in federal taxes than we do, and consistently get far more back from the federal government. States like Mississippi get $4.38 back for every dollar they send to Washington, while the Fifth District in North Jersey has historically only gotten 33 cents. This bill only served to grow that gap.

That’s why, at the time, every Democrat and Republican in our congressional delegation – save for one — voted against last year’s Tax Hike Bill. The New Jersey Realtors came out against it. Tom Bracken, the head of the New Jersey Chamber of Commerce, said that, “being against this … [is] about as pro-New Jersey as you’re going to get right now.”

Higher taxes are stifling economic growth for our region and decreasing property values, which are already falling. According to Moody’s, because of the SALT cap, property values in New Jersey will be down by more than ten percent. A recent Zillow study drew a similar conclusion – since the Tax Hike Bill, home values in low-SALT states are rising much faster than in states like ours.

New Jersey is also a member of multistate lawsuits seeking to overturn the SALT Deduction Cap on constitutional grounds. Attorney General Grewal is also leading a coalition of states against the IRS’s efforts to upend the charitable tax deduction to help blunt the impact of the SALT cap. I introduced this idea alongside the Governor, with Senators Sweeny and Sarlo a year ago, and it was later signed into law.

Specifically, the bill I’ll be introducing, the Cutting Local Taxes by Reinstating SALT Act, will reinstate the State and Local Tax (SALT) Deduction that dates back to 1913 and was implemented to stop double taxation until the enactment of last year’s flawed tax hike bill.

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 bureaucracy – while fighting to keep and bring new jobs to Jersey.  We can fix our roads, bridges and tunnels – and keep our air and water clean. We can get health care premiums downs and make prescription drugs more affordable. We can stand by our vets, our cops, and first responders. And we can stop families from leaving in these moving trucks – we want them coming here.

We are blessed to live in beautiful, safe communities like this one, in a state we all love so much. If we work together, I know that, in the greatest country in the world, our best days will always be ahead of us.  Thank you, God bless you, and may God continue to bless the United States of America.

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