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“SALT “, Revision likely to be Dropped from Bill, say Senate Democrats

Josh Gottheimer

the staff of the Ridgewood blog

Washington DC, Senate Democrats say a proposal to raise the cap on state and local tax (SALT) deductions, a top priority of Senate Majority Leader Charles Schumer (D-N.Y.), and very popular in high tax New Jersey is likely to be cut from the revised “Build Back Better Act”.   

Congressmembers Josh Gottheimer (NJ-5), Tom Suozzi (NY-3), and Mikie Sherrill (NJ-11) issued the following statement on their efforts to repeal the cap on the State and Local Tax (SALT) deduction: “SALT remains a top priority. We support the President’s agenda, and if there are any efforts that include a change in the tax code, then a SALT fix must be part of it. No SALT, no deal.”

However Senate Democrats who were involved in negotiations over the bill before Sen. Joe Manchin (D-W.Va.) blew it up last month say there’s simply not enough room for the expensive tax change, which Republicans argue would benefit wealthy suburban households in blue states.

“Yeah, I think that’s dead,” said one Democratic senator, who requested anonymity to summarize early discussions about changing the bill to win Manchin’s support.

What is the SALT Deduction?

The federal tax reform law passed on Dec. 22, 2017, established a new limit on the amount of state and local taxes (SALT) that can be deducted on a federal income tax return. Beginning in 2018, the itemized deduction for state and local taxes paid will be capped at $10,000 per return for single filers, head of household filers, and married taxpayers filing jointly. The cap is $5,000 for married taxpayers filing separately.

Some states either have passed or are planning to pass new laws allowing taxpayers to make charitable contributions to government funds in exchange for state tax credits. If allowed, these creditable payments could enable taxpayers to effectively convert some of their lost SALT deductions to charitable deductions, which are generally fully deductible for those who itemize on the federal return.

 

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11 thoughts on ““SALT “, Revision likely to be Dropped from Bill, say Senate Democrats

  1. build back bullsh!t

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  2. Josh calls everyone else a “moocher”
    I think making the rest of the country subsidize our stupid taxes makes us the moochers.
    What’s Josh going to do about spending?
    He brags about government largess all the time.

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  3. “I think making the rest of the country subsidize our stupid taxes makes us the moochers.”

    No, it’s the other way around. New Jersey is one of the few states that contributes more federal dollars than receives them. The others are NY, CT, MA, CA, CO,MN, and UT.

    https://worldpopulationreview.com/state-rankings/donor-states

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    1. and you vote for these morons LOL !!!

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  4. Uh-huh, sure.

    Hey, remind me whose tax bill screwed up the salt deduction you’re currently griping about, and did you vote for him?

  5. Ridgewood limo libs will not be pleased.

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  6. What’s the salt all about

  7. Not every high-property-tax-paying home owner in these states is a zillionnaire, by far. They could easily rewrite the cap rule to exclude people with annual incomes lower than X amount (to be revised upward by X percent each year). Congress never sees the gray shades.

    1. you just need to be a Ridgewood property owner

  8. All the salt is raising my blood pressure

  9. Tell this liberal douchbag to stop roboing my cell phone!

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