the staff of the Ridgewood blog
Ridgewood NJ, as Congress debates President Donald Trump’s proposed tax and spending package, House Republicans are making a renewed push to raise the limit on the state and local tax (SALT) deduction, a move that could significantly impact taxpayers in high-tax states like New Jersey, New York, California, and Illinois.
SALT Deduction Cap Could Rise to $30,000 for Some
According to the House Ways and Means Committee, the updated tax proposal includes a provision that would increase the SALT deduction cap to $30,000 for taxpayers earning a modified adjusted gross income (MAGI) of $400,000 or less. The current cap, set at $10,000 under the 2017 Tax Cuts and Jobs Act, has long been a point of contention, particularly among lawmakers from high-tax states.
The full text of the committee’s proposal was released Monday, with debate and a vote scheduled for Tuesday.
Who Benefits from Raising the SALT Cap?
Tax experts note that raising the SALT deduction cap would primarily benefit upper-middle-income households and higher earners, especially those living in states with higher property and income taxes.
For example, a related proposal would double the SALT deduction limit for married couples filing jointly, from $10,000 to $20,000, effectively eliminating the so-called “marriage penalty” in the deduction cap.
According to a Tax Policy Center analysis, nearly all of the tax savings from raising the cap would go to households making more than $200,000 annually.
“If you raise the cap, the people who benefit the most are going to be upper-middle income,” said Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center. “Of course, upper-middle income looks different depending on where you live.”
Why the SALT Cap Matters Most in Certain States
The SALT deduction cap disproportionately affects taxpayers in high-tax states. A Bipartisan Policy Center analysis found that 40 of the top 50 congressional districts most impacted by the SALT cap are in California, Illinois, New Jersey, or New York.
According to Democrat Congressmen Josh Gottheimer , ” Jersey has had the highest outmigration in the entire country for the last seven years, with families and businesses citing affordability and taxes as their chief reasons for leaving. One-third of the state’s publicly traded companies left throughout the last decade. Even the median property tax bill in Bergen County is more than $15,000. That’s right — property taxes here can be 15 times higher than in a state like Mississippi.
The SALT cap hasn’t just been bad for families, it’s been bad for our state’s economy. We are losing people and businesses, and the jobs and investments that come with them. We need to lower taxes and make life more affordable here, and restoring SALT will definitely help.”
If Congress were to fully repeal the SALT cap, households earning $430,000 or more would receive almost 75% of the benefit, according to another Tax Policy Center report.
What’s Next for the SALT Proposal?
The SALT provision remains a major sticking point in tax reform negotiations and could still be revised or removed as the legislation progresses. However, House Republicans are expected to continue advocating for a higher deduction cap as a way to offer targeted tax relief to their constituents.
Follow the Ridgewood blog has a brand-new new X account, we tweet good sh$t
https://twitter.com/TRBNJNews
https://truthsocial.com/@theridgewoodblog
https://mewe.com/jamesfoytlin.74/posts
#news #follow #media #trending #viral #newsupdate #currentaffairs #BergenCountyNews #NJBreakingNews #NJHeadlines #NJTopStories
Why not reduce real estate taxes?
The midget from Tenafly has a commercial promising that (we know he’s lying)
yes he is
Said same thing last 6 years
Gottheimer is full of crap! Blaming everything else but himself and the democrats which run the state with outrageous taxes!
he’s up there among the biggest piece of Cr@p politicians out there
He is a car salesman
No accomplishments as a politician
Raise the SALT cap a lot but don’t eliminate it. Those with enormous incomes can absorb a cap.
I want my taxes funding transgender awareness in outer Mongolia and the sex habits of squirrels in Botswana.
I’m trying to cut back on salt… bad for my high blood pressure