Pascrell, Murphy Hail SALT Relief in Saddle Brook

Federal, state, county, local officials highlight devastating impact of Republican tax scam, urgent need for reform

SADDLE BROOK, NJ – U.S. Rep. Bill Pascrell, Jr. (D-NJ-09), Gov. Phil Murphy (D-NJ), and other officials today spoke at the Saddle Brook Police Department to discuss legislation passed in the House Ways and Means Committee last week that will lift the onerous cap on the state and local tax (SALT) deduction imposed by the 2017 Republican tax scam law. They highlighted the highly negative impact of the cap on state taxpayers as well as on services offered at the county and local levels and prospects for passage of relief legislation in the 116th Congress.

“The impact on New Jersey of the SALT cap imposed by the 2017 Republican tax scam law was like being hit by an anvil from five stories up,” said Congressman Pascrell, the top sponsor of House legislation to overturn the cap and cosponsor of SALT legislation passed in committee last week. “Not only individual taxpayers have taken the hit, but the SALT cap forces our cities and towns into needlessly choosing between funding their schools, their roads, or their water services. The legislation passed in the Ways and Means Committee will provide the significant and immediate tax relief New Jersey and tristate taxpayers have been rightly demanding. But this only a first step, and we’re going to keep pushing until the legislation is approved by the full House, hopefully very soon.”

“With the Trump Administration’s continued assault on New Jersey’s middle-class tax payers and hardworking homeowners, bringing fair treatment from Washington back to our residents will take a strong partnership between our Administration and New Jersey’s federal delegation,” said Governor Murphy. “I have been proud to work alongside Congressman Pascrell as he seeks to undo the damage brought by President Trump’s 2017 tax bill, and I am proud to stand with him today. We know this fight is far from over, and will continue to work in solidarity to restore full deductibility to residents in the 9th Congressional District, across the state of New Jersey, and in other states suffering under the current unfair tax law. I urge all members of the House of Representatives to pass H.R. 5377.”

“The Trump Tax Scam has hurt middle-class homeowners throughout New Jersey, while helping the rich get richer,” said Senator Menendez, a senior member of the Senate Finance Committee that writes national tax policy. “I applaud Congressman Pascrell for his work advancing a SALT cap repeal in the House.  The SALT cap is crushing communities’ ability to fund schools and police, and is driving down property values.  The Senate must act to restore the full SALT deduction and provide much-needed relief for homeowners across our state.”

“The SALT cap imposed has directly hampered the ability of our community and communities across New Jersey to fund the services that our citizens expect and rely on. Our state and local taxes fund our roads, our schools, our teachers, first responders, and health clinics. A town like Saddle Brook should not have to decide between its teachers and its water but that’s precisely what the SALT cap has forced on us. I thank Congressman Pascrell, Senator Menendez, and their colleagues for pushing so hard. Our cities are counting on this legislation becoming law and giving us relief,” said Saddle Brook Mayor Robert White.

The legislation approved by the Ways and Means Committee last week, H.R. 5377, would (1) eliminate the cap’s marriage penalty for 2019, enabling married taxpayers filing jointly to claim up to $20,000; (2) repeal the cap entirely for 2020 and 2021; and (3) pay for the tax relief by restoring the top income tax rate of 39.6 percent that was in effect prior to the 2017 tax scam.

In addition to providing SALT relief, the legislation will amend the U.S. Tax Code to allow first responders to take tax deductions for their uniforms and for tuition or related fees for professional development courses of up to $500. Currently, first responders, including police, firefighters, and EMTs, often must pay for their own uniforms and the costs of uniform maintenance, paying out-of-pocket fees that range from $500 to $1,000, as well as for professional development courses that can average several hundred dollars.

The House Rules Committee is scheduled to meet this evening to consider moving to bill to the House floor.

Rep. Pascrell has been a leading a critic in Congress of the Republican tax scam and has repeatedly assailed the capping of the SALT deduction. Pascrell is the lead sponsor of H.R. 1142, the bipartisan Stop the Attack on Local Taxpayers Act of 2019, which would remove the cap on the federal SALT deduction and also raise the top personal income tax rate to where it was before the 2017 Republican tax scam. The bill is currently cosponsored by 47 House members. Companion Senate legislation, S. 437, is sponsored by Sen. Menendez and currently cosponsored by 13 senators. Pascrell first authored legislation addressing importance of the state and local tax deduction in 2012. He recently offered several amendments on SALT fairness, including the amendment to eliminate the cap during Ways and Means Committee consideration of the 2017 tax bill.

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