In the lead up to the House and Senate Conference, and in a show of bipartisanship, Rep. Josh Gottheimer (D-5) and Rep. Leonard Lance (R-7), two members of the Problem Solvers Caucus, unveiled a Bipartisan fix to save the State and Local Tax Deduction, cut taxes for New Jersey families and businesses, and reduce the deficit.
The bipartisan plan includes a fix to the Senate Tax Hike Plan, as passed over the weekend, by preserving the State and Local Tax Deduction, saving the Mortgage Interest Deduction, and reducing the deficit impact by more than $100 billion, based on estimates from the bipartisan Joint Committee on Taxation (JCT). The plan would retain the same basic rate structure as the Senate bill, including doubling the standard deduction, lowering rates for individuals and reducing the top tax bracket. The bill would also protect seniors and students by retaining the Medical Expense and Student Loan Interest Deductions.
Specifically, the bill would:
1. Save the State and Local Tax Deduction
2. Preserve the Mortgage Interest Deduction
3. Cut Taxes for Individuals
4. Cut Corporate Tax Rate to 20% and Create 23% Deduction for Small Businesses and Pass through Businesses, including professional services such as doctors, lawyers, and accountants, consistent with the Senate bill.
5. Deficit Reduction of more than $100 billion
6. Retain Important Deductions and Exemptions including Medical Expense, Student Loan Interest and Private Activity Bonds
7. Retain Current Amortization for Capital Investment
8. Encourage Charitable Donations and Deployment by Closing the “Private Foundation Loophole.”
9. Double the Estate Tax Exemption, Protect Family Businesses and Farms
10. Close New Loopholes and Special Interest Handouts
The full plan can be found HERE.
Announcing the plan, Gottheimer said, “New Jersey families need a tax cut, but what we’ve seen so far in Congress is a Tax Hike Bill paid for on our backs in the Garden State. Congressman Lance and I came together to offer an alternative for the Conference Committee: a commonsense, bipartisan tax cut plan that’s good for New Jersey families and businesses of all sizes and that saves the State and Local Tax Deduction. I urge our colleagues in Conference this week to consider our plan that would actually cut taxes, save the SALT deduction, and reduce the deficit. This plan delivers tax cuts and stops Moocher States from gutting New Jersey’s economy.”
“Tax reform should benefit all Americans and not pick winner states over loser states. New Jersey is already one of the highest-taxed states in the Nation, sending a disproportionate amount of funds to Washington. Enough is enough. We are presenting the conference committee with ideas for a fiscally responsible compromise that ensures New Jerseyans see the same tax relief promised to other states,” said Lance.
Video of today’s announcement can be found HERE.
The Democratic Congressional Campaign Committee (DCCC) nonetheless wasted no time excoriating Lance. who voted to advance the GOP Tax Bill and send it to conference with the Senate. Defeating the conference vote would have doomed the destructive bill, the DCCC pointed out, which will hike taxes on Lance’s middle-class constituents.
“Yesterday Representative Lance betrayed his constituents, voting to pave the way for a Republican Tax Scam that will hike taxes on middle-class families,” said DCCC Spokesman Evan Lukaske. “Once again, Lance revealed that when it gets down to brass tacks, he has no problem throwing his constituents under the bus. Luckily, they’ll get to return the favor next November.”
Lance’s office pushed back, saying that “ensuring a conference committee enables problem solvers like Leonard Lance to work in a bipartisan fashion to improve the bill for New Jersey’s taxpayers.”