House Democrats agreed to raise the cap on the State and Local tax (SALT) deduction from $10,000 to $80,000 for the next ten years, rolling back an elimination of the deduction that was approved by Republicans in 2017.
The agreement comes one day before the House votes on the Build Back Better spending plan and drew applause from two North Jersey House members who said they have been “fighting this unfair, targeted tax” since 2017.
Reps. Josh Gottheimer (D-Wyckoff) and Mikie Sherrill (D-Montclair) said the agreement “will effectively eliminate the undue burden for nearly all of the families in our districts who’ve been unfairly double taxed for the last four years.”
“This fix will put money back in the pockets of hardworking, middle class families in our districts and help ensure that our local communities can continue making the investments that we need,” Gottheimer and Sherrill said.
Some Democrats say that the SALT deduction helps the wealthy, but Gottheimer, Sherrill and other members of the New Jersey delegation have argued that the deduction was harmful to all lower income residents in high tax states.
“We’re confident that with this agreement, we can move forward on this crucially important package, and we will continue working to ensure that this tax cut gets signed into law to deliver this relief to our constituents as soon as possible,” Gottheimer and Sherrill said.