The Republican tax plan in the U.S. House would raise the cap for the state and local property tax deduction from the current $10,000 to $30,000 for families making up to $400,000.
That’s according to legislation released May 12 by the Republican-led House Ways and Means Committee. It’s a non-starter with representatives in the House’s so-called “SALT Caucus,” who have campaigned for years to repeal completely the limit on the deduction for federal income taxes.
“We’ve negotiated in good faith on SALT from the start, fighting for the taxpayers,” reads a joint statement from New York Reps. Mike Lawler, Elise Stefanik, Andrew Garbarino and Nick LaLota, all Republicans.
“Yet with no notice or agreement, the speaker and the House Ways and Means Committee unilaterally proposed a flat $30,000 SALT cap — an amount they already knew would fall short of earning our support,” the statement reads. “It’s not just insulting — it risks derailing President Trump’s One Big Beautiful Bill.”
The committee is scheduled to debate and vote on the bill on May 13 at 2:30 p.m.
North Jersey Democratic Rep. Mikie Sherrill, who is running for governor, called Republican support the proposal “unacceptable.”
Rep. Josh Gottheimer, also a candidate for governor, said the proposal “just doesn’t cut it.”
“This will only drive more Jersey families out of the state because it’s just too expensive,” he said in an emailed statement. “Our families deserve a real tax cut, not some sham proposal.”
Gottheimer previously said he wanted a full repeal of the cap. Sherrill said previously that she wanted the deduction raised to $100,000 for single filers or $200,000 for married couples filing jointly.
New Jersey’s congressional Republicans have also proposed raising, but not repealing, the cap.
The GOP proposal would cut taxes and extend President Donald Trump’s 2017 tax cuts due to expire this year. To pay for that, they would tighten social safety net benefits for the poor, Reuters reported.
House Speaker Mike Johnson wants the bill — a centerpiece of Trump’s domestic agenda — to be passed before Memorial Day weekend, which starts May 24.
What the SALT deduction is
The SALT deduction lets people reduce the amount of their annual income that can be taxed by the federal government by subtracting how much they pay in state income taxes and local property taxes. The deduction has existed since 1913, the Congressional Research Service said.
The current $10,000 cap on the deduction was set as part of the 2017 tax law and is set to expire at the end of this year, along with other tax cuts and provisions.
Overview of the Some College, No Credential Population and Educational Outcomes in New Jersey, 2023–2024 New Jersey State Policy Lab Supporting New Jersey residents in returning to college after leaving without a credential has been an increasing focus of the state’s...
Equal charging for all: Are there income-based disparities in public charging stations? Abstract We compare charging station accessibility for different income groups in the San Francisco Bay Area. Using a microsimulation model, we estimate charging station...
The Heldrich Center for Workforce Development is pleased to announce the availability of two new research products resulting from its long-running public opinion polling series, Work Trends. To better understand the public’s attitudes about work, employers, and the...
Report Release: Analyzing the Use and Equity of ARPA Funds in NJ Local Governments and Beyond New Jersey State Policy Lab The American Rescue Plan Act’s Coronavirus State and Local Fiscal Recovery Funds (ARPA-SLFRF) represent a historic $350 billion investment to...
Dr. Irina Grafova recently returned from the AcademyHealth Research Meeting in Minneapolis, where she had the opportunity to present two posters from the Virtual Schwartz Rounds emotional support program for nurses, run by the New Jersey Nursing Emotional Well-being...
