A New Jersey congressman has a plan to lower federal tax bills for millions of New Jersey residents, but he’ll need some help.
Six years ago, New Jerseyans were walloped when state and local tax deductions, known as SALT, were capped at $10,000. As the Garden State is one of the highest taxed states in the nation and has the highest average property taxes in the US, this resulted in larger federal tax bills for countless New Jerseyans – and causing them to be taxed twice on the same dollars.
Now, Rep. Josh Gottheimer of New Jersey’s 5th Congressional District is looking to change that. He has put together a bipartisan group of 47 congressmen in support of his SALT Deductibility Act, which would reinstate those savings.
“It will allow families to fully deduct their state and local taxes, their property taxes and state income taxes on their federal income returns before they pay those taxes,” Gottheimer said.
“The red states stuck it to us. They gutted the State and Local Tax deduction, capped it out at $10,000 and that meant taxes went up for many of our families,” he said.
Previous attempts to reinstate SALT’s full savings were blocked by Republicans in the Senate. However, with growing support for the measure in Congress, Gottheimer believes this time things could be different.
We can hope.
