A huge property tax relief measure for NJ is back on the table
Huge tax relief is back on the table in Washington.
When President Joe Biden’s Build Back Better bill died in the Senate last year, so did attempts to change the so-called SALT cap – or the amount of state and local tax you can deduct on your federal income tax return.
New Jersey U.S. Senator Bob Menendez says he is now trying to include changes to the SALT cap in legislation designed to reduce health care and prescription drug costs.
The former administration of Donald Trump capped the amount of state and local tax you could deduct at $10,000. 4 in 10 New Jersey residents claimed at least double that number on their federal returns.
New Jersey is known for having the highest property taxes in the nation, and the cap has hit Garden State taxpayers and others in high-tax states particularly hard.
One of the biggest challenges in getting progressive senators like Bernie Sanders of Vermont to agree to changes to SALT has been ensuring it won’t be used as another tax break for the wealthy.
Menendez says he’s working on that, though the Joint Committee on Taxation has previously claimed that two-thirds of those who use the deduction reported less than $200,000 in income.
Efforts to repeal or raise the SALT cap have been underway since its enactment in 2017.
New Jersey joined three other high-tax states in suing the federal government in an attempt to overturn it. The Supreme Court declined to hear the case in April, leaving in place a lower court ruling that upheld the federal government’s broad power to enact tax policy.
Eric Scott is the senior policy director and anchor of New Jersey 101.5. You can reach him at [email protected]
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