Rep. Pascrell Introduces Deduction Cap Repeal, Rep. Sherrill Launches “12 Days of SALT”

Rep. Bill Pascrell (D-9), a member of the House Ways & Means Committee which has jurisdiction over all tax legislation, continued his efforts to restore the SALT deduction Wednesday by joining fellow Ways & Means member Rep. Tom Suozzi (D-NY) to introduce the Restoring Tax Fairness for States and Localities Act (H.R. 5377), legislation repealing the cap on the deduction of state and local taxes (SALT).

The legislation would:

  • Eliminate the cap’s marriage penalty for 2019, enabling married taxpayers filing jointly to claim up to $20,000;
  • Repeal the cap entirely for 2020 and 2021; and
  • Pay for the tax relief by restoring the top income tax rate of 39.6 percent that was in effect prior to the 2017 tax reform act.

The measure is scheduled for Ways and Means Committee markup today.

There are 39 cosponsors including Rep. Andy Kim (D-3), Tom Malinowski (D-7), Mikie Sherrill (D-11), Albio Sires (D-8) and Bonnie Watson Coleman (D-12). 

Sen. Robert Menendez (D-NJ) introduced a similar measure in the Senate (S. 437) which has 14 cosponsors including Se. Cory Booker (D-NJ). 

Last week with 12 days left on the legislative calendar, Rep. Mikie Sherrill (D-11) took to the House floor to launch a “12 Days of SALT” campaign to urge the U.S. House to lift the federal cap on state and local tax (SALT) deduction before the end of 2019.

“I rise today on behalf of the taxpayers of North Jersey,” said Representative Sherrill. “There are 12 days left in the legislative calendar. I urge the House to close 2019 by lifting the cap on the state and local tax deduction. I will be here on the floor every day this holiday season, highlighting the impact of SALT on my constituents and on Americans across the country, for ‘12 Days of SALT.’”

Her full floor speech on Day 1 of the “12 Days of SALT” is available here.

Since 1913, taxpayers choosing to itemize could deduct state and local taxes from their federal returns. That changed in 2017, when the Tax Cut and Jobs Act imposed a $10,000 cap on the SALT deduction. This policy violates 150 years of precedent in federal tax law, disproportionately harms New Jersey, and unfairly imposes a marriage penalty on couples filing jointly.

Rep. Sherrill is the author of the bipartisan SALT Relief and Marriage Penalty Elimination Act (H.R. 2624). Introduced earlier this year, Representative Sherrill’s bill is co-sponsored by Reps. Elise Stefanik (R-NY), Peter King (R-NY), and Gil Cisneros (D-CA), and endorsed by the American Federation of Teachers and National Association of Realtors.