For years – and years, it seems – Democrats have been trying to get the so-called SALT cap eliminated.
It’s been a long, winding and so far, unsuccessful road.
Capping the state and local tax deduction on federal taxes at $10,000 was part of the Trump tax reform package in 2017.
Democrats ran against the cap in 2018 arguing that it adversely impacted middle class families in New Jersey and New York. This was a successful strategy as the Dems took control of the House.
The Democratic-controlled House voted more than once to get rid of the cap, but the then-Republican Senate balked.
Last year with Democrats controlling the Senate, cap relief was included in the original Build Back Better bill, but it didn’t make the final cut. That left things the way they began five years ago – the deduction for state and local taxes on your federal tax form is capped at $10,000.
New Jersey Republicans blasted Democrats for allowing this to happen during last fall’s midterm election, but for the most part they were unsuccessful. The only incumbent Democrat to lose was Tom Malinowski, but redistricting had put him in a Republican-leaning region.
Now Republicans control the House, making SALT cap elimination seem more distant than ever.
Mikie Sherrill is still trying.
The congresswoman from the 11th District said Thursday that she will introduce the Middle Class Tax Relief Act, a plan that would effectively eliminate the cap. Officially, it would raise the deduction cap to $100,000 for singles and $200,000 for couples, thereby providing relief to all but the very rich.
Sherrill stressed in a zoom interview that a co-sponsor is Republican Michael Lawler of New York, whose district lies just over the stateline from Bergen County. She expressed hope that some of the other just-elected Republican House members from New York state would support the effort. One of those newly-elected members, of course, is the now-infamous George Santos. Gee, how prudent is it to depend on him?
Nonetheless, it is still going to be a tough challenge, assuming that most House Republicans probably have no interest in doing away with the SALT cap.
That possibility has Sherrill looking ahead.
She said GOP intransigence on this issue can help Democrats win back those New York GOP seats and take back the House in 2024.