U.S. Treasury Secretary Janet Yellen told Rep. Josh Gottheimer (D-Wyckoff) she would work with Congress to eliminate the $10,000 cap on state and local tax deductions imposed by the 2017 Republican tax bill.
“I do think the SALT cap is a feature of [the Tax Cuts and Jobs Act] that resulted in very disparate treatment,” she said during a House Financial Services Committee hearing. “There are a lot of options that have been presented and I would work with you to try to ensure that the inequities that this caused are remedied in a fair and responsible way. As you mentioned, there is a bipartisan proposal to repeal the cap.”
She also listed raising the cap and as an option, noting any changes would have to be studied.
New Jersey lawmakers have long railed against the SALT cap. The policy disproportionately affects taxpayers in more affluent blue states, like New Jersey. It was a staple issue in 2018’s House races and featured in last year’s elections.
“It’s high time we fought back against these Moocher States that put the 2017 Tax Hike Bill into place. Our taxes need to be cut in New Jersey, not raised, as we recover from COVID-19, and removing the SALT cap has broad bipartisan support,” Gottheimer said.