Will You Get a Break on Your NJ Property Taxes?
Will New Jersey families get a break on their property taxes? Maybe.
New Jersey's congressional delegation remains united in the fight to lift the cap on the State and Local Property Tax deduction (SALT) on your federal tax return.
Congressman Josh Gottheimer (D-5) is leading a coalition of lawmakers in high tax states who say they will oppose any spending bill that does not address the SALT deduction. On Sunday, Gottheimer appeared on CNN’s “State of the Union." There is a proposal that would reinstate the full deduction for as little as two years. Gottheimer said, "I'm fine with that.”
Many progressive Democrats have fought against lifting the current $10,000 SALT cap, arguing it would benefit the "rich." Gottheimer, a Democrat, said in high tax states like New Jersey that just isn't true. He used the example of a police officer and teacher with a combined income of $200,000. "When we reinstate SALT, that's giving tax breaks for them, because the cost of living here is higher, right? And I just want to be clear about that, that these are folks who are struggling to get by. And reinstating SALT will bring down their taxes.”
New Jersey U.S. Senator Robert Menendez has sounded less optimistic about a full restoration of the SALT deduction. Menendez sits on the Senate Finance Committee, and told NJ.com, “If I can't get the full restitution, then I want to get as much as possible."
For now, the Senate version of the current spending bill includes a partial restoration of the SALT deduction, but the House version of the bill does not. Lawmakers will work this week to reconcile the two bills in the hopes of passing a $3.5 trillion budget package.
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