Rep. Gottheimer Announces Bipartisan Bill to Reinstate SALT Deduction

Rep. Josh Gottheimer (NJ-5) last week unveiled new bipartisan legislation that would reinstate the State and Local Tax (SALT) deduction.

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,” Rep. Gottheimer said at a Thursday event in Mahwah.  

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.” he added

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.