Home>Congress>Murphy, pushing for SALT cap removal, isn’t willing to make an ultimatum

Gov. Phil Murphy. announces an agreement with legislative leaders to pass a millionaires tax and a middle-class tax rebate in September 2020. (Photo: Office of the Governor.)

Murphy, pushing for SALT cap removal, isn’t willing to make an ultimatum

By Joey Fox, October 20 2021 2:52 pm

Responding to reports from yesterday that the State and Local Tax (SALT) deduction cap lift may be removed from President Joe Biden’s Build Back Better plan, Gov. Phil Murphy today reaffirmed his strong support for lifting the cap, but didn’t sound willing to scrap the reconciliation bill over the issue.

“We need the SALT cap lifted, period. It’s the single biggest tax increase on the middle class in the history of our state,” he said at his twice-a-week Covid briefing. “It is a huge deal for New Jersey, and it has to be lifted either directly as a part of whatever compromise is reached, or alongside of it, but it’s got to get lifted.”

His apparent openness to achieving a SALT cap lift through means other than the reconciliation bill is somewhat at odds with what many New Jersey House members have pushed for. A coalition of four New Jersey House Democrats said last month that they wouldn’t vote for the reconciliation agreement if it didn’t address SALT.

Murphy added today that he’s been in conversations with members of the state’s delegation on the issue, though he did not go into more specifics or say with which members he’s spoken.

“We speak constantly with members of our delegation,” he said. “I had long conversations a couple of times yesterday, one in particular.”

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