the staff of the Ridgewood blog
MAHWAH NJ, Frank Pallotta, Republican Candidate for Congress in New Jersey’s Fifth Congressional District, made the following statement regarding immediate relief to small businesses, charities and residents in high-tax states affected by the current crisis.
Pallotta proposes the following:
- Immediately restore the SALT deduction for tax years 2019 and 2020 only, allowing those who have already filed their 2019 returns, to restate their tax returns in order to receive their full deduction.
- Restore the full, line item charitable deduction for the tax year 2020.
- Call for the immediate and direct issuance of up to a $2 Trillion Treasury “War Bond” offering, specifically targeting small businesses and their employees.
All of these proposals are designed to provide immediate and direct relief to those most affected by this crisis – small & medium businesses and their workers, including contractors. These workers are critically important to the country and are the backbone of our economy. These workers make up as much as 20% of the workforce in some areas of the country. Leaving them out of a longer term solution will only succeed in damaging our already fragile financial ecosystem.
“In light of last night’s move by Senate Democrats to block a critically important financial stimulus package, I am prepared to fight tirelessly for those affected by this crisis. These measures – including a government-backed bond offering – will quickly provide struggling taxpayers and business owners in New Jersey and across the country the help they so desperately need. Temporarily restoring the SALT deduction will help struggling homeowners navigate this crisis. Additionally, charities are often the first to feel the negative effects of a financial downturn. Restoring the full charitable deduction will allow critical organizations like Doctors Without Borders, Wounded Warriors, and The American Red Cross, the ability to continue providing assistance to those in need.”
Finally, structuring widespread, small business assistance in the form of a “War time” bond offering will save time and money in both the short and long run. Historically low interest rates could not have come at a better time, allowing the government to spread this relief over the course 3 decades or more. “Desperate times demand desperate measures If this truly is a war against a virus and the President is a wartime president; then floating a “War Bond” is both appropriate and entirely necessary.”
Finally, shifting the immediate financial burden from the United States Government and the taxpayer, to institutional bond holders via a Government guarantee, will succeed in dispersing risk and providing a return to those institutions with the wherewithal to navigate the crisis.