Gottheimer, Pascrell Lead Push To Restore SALT Deduction

NEW JERSEY — U.S. Representatives Bill Pascrell, Jr., NJ-9, and Josh Gottheimer, NJ-5, are leading the full New Jersey House delegation in formally requesting that Congressional leadership include the repeal of the State and Local Tax (SALT) deduction cap in the next COVID-19 relief package.

The congressmen held a news conference at a U-Haul store in Paterson Wednesday to announce the decision.

A $10,000 cap was put on the SALT deduction in the 2017 tax act, which The Center for Public Integrity called "badly broken."

Gottheimer and Pascrell didn't mince words on the bill, which both described as a wholly partisan decision.

"Repealing the odious SALT cap remains one of absolute top priorities in the 117th Congress," said Pascrell. "The SALT cap was enacted solely by the Republicans in their pathetic 2017 tax scam bill and New Jersey has been paying the price ever since."

Both said repealing the cap would help middle class families in New Jersey, especially now, as the coronavirus continues to effect the economy.

"Ever since the ruby red Moocher States whacked New Jersey with the 2017 Tax Hike Bill, I’ve been fighting to fully reinstate our SALT deduction, to finally cut taxes for North Jersey families, and help more of our residents to stay here in Jersey — especially now as we’re still grappling with the COVID-19 public health and economic crisis," said Gottheimer.

"While our residents and state are hurting, it’s time we fought back against the Moocher States who don’t pay their share."

The term "Moocher States" hasn't created many fans of Gottheimer in the states he's referencing, but he isn't the only one to bring partisanship into funding debates.

Sen. Mitch McConnell of Kentucky said in discussing a COVID-19 relief bill that he didn't want it to be a "blue state bailout."

The pandemic, both Gottheimer and Pascrell said, adds an extra layer of importance to repealing the cap, but so does a troubling trend in the state.

For the third year in a row New Jersey is the state people have moved out of most, according to the 2020 National Migration Study by United Van Lines.

U-Haul’s 2020 Migration Trends report came to a similar conclusion, with New Jersey ranking third highest in the net migration of U-Haul trucks leaving the state last year.

The New Jersey delegation sent letters to House Speaker Nancy Pelosi and Senate Majority Leader Schumer, as well as newly confirmed Treasury Secretary Janet Yellen.

Read the letter to Pelosi and Schumer here.

And the letter to Yellen here.