Sherrill, Stefanik, King, and Cisneros Introduce Bipartisan SALT Bill to Increase Cap
Washington, DC – Today, Representative Mikie Sherrill (D-NJ) announced the introduction of bipartisan legislation with Representatives Elise Stefanik (R-NY), Peter King (R-NY), and Representative Gil Cisneros (D-CA) to raise the State and Local Tax (SALT) deduction cap. The 2017 Tax Cuts and Jobs Act limited the SALT deduction to $10,000, and married couples filing jointly are harmed by having the same limit to $10,000 cap as individuals. The SALT Relief and Marriage Penalty Elimination Act would make the SALT deduction equal to the standard deduction taken by taxpayers, encouraging homeownership and charitable giving.
The SALT Relief and Marriage Penalty Act will raise the cap on the SALT deduction to equal the levels of the standard deduction:
- $12,000 for Individual Filers
- $18,000 for Head of Households
- $24,000 for Joint Filers
“Imposing a $10,000 cap on SALT deductions has nothing to do with thoughtful tax policy,” said Representative Mikie Sherrill (D-NJ). “It’s simply an attack on New Jersey residents, businesses, and homeowners, and unfairly limits married couples to the same $10,000 cap as individuals. I am working on full repeal of the SALT deduction cap, but this bipartisan bill will begin to right the wrong done to New Jersey and raise the SALT deduction across the board, and restore incentives for charitable giving and homeownership. I’m proud to partner with Representatives King, Stefanik, and Cisneros to provide relief to middle-class families who have been penalized by double-taxation.”
“New York is one of the highest taxed states in the country and many families in my district rely on this important deduction,” said Representative Elise Stefanik (R-NY). I believe the SALT deduction cap in the Tax Cuts and Jobs Act is a form of double taxation on hardworking North Country families, and I am proud to introduce this commonsense bill to bring parity to 21st District taxpayers and encourage homeownership for healthy, thriving communities.”
“By eliminating deductions for local and state taxes the tax reform plan will have a devastating effect on New York,” said Representative Peter King (R-NY). We give far more to Washington then we get back. For every dollar we give, we get $.79 back. That’s a $48 billion shortfall and hurts our middle class not only on Long Island and in New York but New Jersey as well.”
“I am proud to join my colleagues in introducing this bipartisan bill that will change the State and Local Tax (SALT) deduction cap. The cap on the SALT deduction has had a harmful effect on middle-class families, especially those in my Southern California district,” said Representative Gil Cisneros (D-CA). “I have heard from too many families who are struggling after being hit with a larger tax bill due to the current SALT provision, which disproportionately affects married couples. This legislation is a reasonable fix that will ensure the SALT marriage penalty is eliminated and take steps to lower taxes for all Americans.”
“We appreciate Representatives Sherrill, Stefanik, Cisneros, and King’s bipartisan efforts to provide tax relief while we continue to advocate for a full repeal of the SALT deduction cap,” said National Association of Counties CEO Matt Chase. “We stand firm that the SALT deduction is a ‘tax expenditure’ on paper only under arcane federal budget rules. State and local taxes predate the creation of the IRS tax code in 1913, with local property taxes dating back to 1796. Just as critics feared with the adoption of the 16th Amendment to the U.S. Constitution, we now have federal intrusion into the taxation decisions of co-sovereign states and their local governments. SALT was one of the six original federal tax deductions to ensure our residents do not face double taxation. Unfortunately, recent changes to the SALT provision punishes homeowners, public schools and counties for investing in their local communities.”
In 2016, there were 108,000 joint returns filed by Morris County residents. The average SALT deduction for Morris County was more than $23,500. Eliminating the marriage penalty and raising the cap to $24,000 for joint filers will give residents in the 11th District parity.