NJ Democrats Fail to Deliver Promised Tax Break
For months, members of New Jersey's congressional delegation insisted they would not vote for any spending package that did not restore a key property tax deduction that would benefit thousands of taxpayers in the Garden State.
All of them have now done an about-face on their hardline stance.
Among the most vocal about lifting the $10,000 cap on state and local property tax deductions (SALT), were Josh Gottheimer, NJ-5, Mikie Sherrill, NJ-11, and Tom Malinowski, NJ-7.
All had proclaimed, "No Salt, no deal," when it came to previous spending proposals.
All are now supporting the Inflation Reduction Act and will vote 'yes' when it comes up for a vote in the House on Friday.
All are also trying to justify their about-face on SALT.
Sherrill issued a statement saying the $750 billion dollar spending bill is good for her district. "Because this legislation does not raise taxes on families in my district, but in fact significantly lowers their costs," Sherrill said, "I will be voting for it.”
The congresswoman only made passing mention of SALT, "I will also remain steadfast in my commitment to ensuring that any discussion of reforms to the 2017 tax law begins with addressing SALT."
There are no current plans in the House or Senate to further address the measure.
Rep. Gottheimer also announced his support for the Inflation Reduction Act, saying in a statement, "After careful review, it is clear that the Inflation Reduction Act is good for the families and small businesses in northern New Jersey."
He also made a passing reference to his previous stance, but not nearly as absolute. "If someone tries to change the tax rates on families in my District," Gottheimer said, "I will insist that we restore the State and Local Tax Deduction."
The spending bill passed the Senate with zero Republican support and delivers a badly needed win to President Joe Biden before the mid-term elections.
It boasts the largest investment in climate change and green energy in U.S. history and is designed to help reduce prescription drug costs for Medicare. It aims to reduce the deficit by imposing a 15% minimum tax on large corporations. It also funds an expansion of IRS auditors to help collect the tax that is owed.