Trump & Co. Hope to Make SALT Cap Permanent

NJTV News | July 31, 2018 | Politics
For GOP, capping the deduction keeps a “future Washington” from stealing funds from country’s middle class and small businesses

New Jersey residents who’ve kept a spark of hope alive that the SALT (state and local tax) cap rolled out with Trump’s $1.5 billion tax package might be rolled back someday may just have had that spark snuffed out.

The tax bill is set to expire in 2025, but now there’s a push from President Donald Trump and other congressional Republicans to make it permanent. House Ways and Means Committee Chairman Kevin Brady said the best way to continue to strengthen America’s economy is with America’s middle-class families and small businesses.

“We can protect them against a future Washington trying to steal back those hard-earned dollars that you and the Republicans in Congress have given them,” Brady said, justifying the permanent cap.

As might be expected, Democratic Rep. Josh Gottheimer (NJ-5), had a different take. “Before the tax-hike bill passed last December, we were able to deduct in New Jersey anything you paid in your property taxes or your state income tax. Before you ever had to pay your federal taxes, you would deduct those out, that way you would avoid getting taxed twice on the same income,” he said. “We’re of course now going to have to pay more in taxes, and those benefits are going to other states, not New Jersey.”

The anticipated House vote on whether to make the tax bill permanent is set for September.

Read the full story on NJTV News Online, a content partner of NJ Spotlight.