Bipartisan caucus renews push in new Congress to lift SALT deduction cap for homeowners

Daniel Munoz, NorthJersey.com
·2 min read
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A bipartisan coalition in Congress has renewed its push to lift the $10,000 cap on deducting state and local taxes from federal tax returns.

Originally formed in 2021, the group of federal lawmakers dubbed the SALT Caucus has added new faces from both sides of the aisle in its efforts to lift the cap. This time, it will try with a Republican-led House and Democrats leading the Senate and White House in the new two-year congressional session.

The so-called SALT deduction was enacted in 2017 as part of then-President Donald Trump’s federal tax cuts. It has mostly affected higher-income property owners in states such as California, New Jersey and New York.

It expires in 2025, and analysts in Washington have warned that the new conservative majority in the House of Representatives is sure to block efforts to undo one of Trump’s cornerstone achievements, his federal tax cuts.

Rep. Josh Gottheimer speaks during a press conference in Englewood on Sept. 17, 2021. Gottheimer and other members of the “New Jersey SALT Strike Team” want a full repeal of what they called “the disastrous cap” on the State and Local Tax (SALT) deduction.
Rep. Josh Gottheimer speaks during a press conference in Englewood on Sept. 17, 2021. Gottheimer and other members of the “New Jersey SALT Strike Team” want a full repeal of what they called “the disastrous cap” on the State and Local Tax (SALT) deduction.

“It’s high time that Congress restores the SALT deduction to cut taxes and help make life more affordable for our families,” one of the co-chairs, Rep. Josh Gottheimer, D-Wyckoff, said at an announcement outside the U.S. Capitol on Wednesday afternoon.

For subscribers:With GOP set to run House, could Congress restore big tax break for NJ homeowners?

His co-chairs include New York 2nd Congressional District Rep. Andrew Garbarino and Reps. Young Kim and Anna Eshoo, both from California.

“These are not millionaires, these are working-class people, and every year, they get screwed,” said Garbarino, a Republican.

Rep. Mikie Sherrill, a caucus vice chair, is co-sponsoring a bill to lift the limit from $10,000 per household to $100,000 per single filer and $200,000 for married couples, the congresswoman said in a statement.

It’s not immediately clear from Gottheimer’s office whether the caucus would back this legislation. Another caucus member, Hudson Valley Republican Mike Lawler, of New York's 17th Congressional District, is co-sponsoring the bill.

Other caucus members from New Jersey include Reps. Andy Kim and Bill Pascrell Jr., as well as the newest members of the delegation, Republican Tom Kean Jr. and Rob Menendez Jr., a Democrat.

This article originally appeared on NorthJersey.com: SALT Caucus pushes again for tax cap repeal in NJ, NY and CA