Yesterday, in Washington, the United States House of Representative passed a budget resolution, which will allow Congress, as it considers tax reform, to deny citizens the ability to claim a Federal Income Tax deduction for the amount of money they have already paid, in state and local taxes. This deduction, known by the acronym SALT (for State And Local Taxes), has been part of the United States tax code as long as there has been a federal income tax.
Repeal of the SALT deduction would lower home values and constrain New Jersey local budgets, which rely on property taxes to fund essential services and programs, more so than municipalities in any other state.
On Wednesday, we asked you to contact your representatives, in opposition to the resolution. Thanks to those of you who did, eleven members of New Jersey’s twelve member delegation voted against the proposal, because of the threat it poses to preservation of the SALT deduction.
We thank Representatives Gottheimer, Lance, LoBiondo, MacArthur, Norcross, Pallone, Pascrell, Payne, Sires, Smith, and Watson Coleman for their support. If your municipality is in any of the Districts that they represent, please express your gratitude for their consideration.
The fight to preserve SALT goes forward. The House is scheduled to release a draft tax reform bill next week. From there, it will go to the Ways and Means Committee. We will let you know what actions are needed, once we are able to evaluate that proposal.
Contact: Jon Moran, Senior Legislative Analyst, email@example.com, 609-695-3481, x121.