What about the SALT Cap?

Gottheimer, left, and Malinowski.

The SALT cap doesn’t look like it’s going anywhere.

The Inflation Reduction Act, which somewhat dramatically passed the Senate on Sunday with the vice president casting the deciding vote, does not eliminate the much-discussed $10,000 cap on state and local taxes.

Nonetheless, Democrats Cory Booker and Bob Menendez both backed the $750 billion bill and you can expect Democratic House members to do the same. That vote is expected on Friday.

Reps. Mikie Sherrill and Josh Gottheimer already have said they would vote “yes.”

But what about the SALT cap, which Dems have pledged to get rid of?

Sherrill said she will “remain steadfast” in ensuring that any reforms to the 2017 tax law begin with addressing SALT.

However, she will vote for the inflation reduction bill because “it does not raise taxes on families in my district, but in fact significantly lowers their costs.”

Gottheimer said something similar.

Republicans are going to make a big deal over the failure to get rid of the SALT cap.

But it’s reasonable to ask, how far is that issue going to go?

As Menendez pointed out, it was the Republicans who imposed the cap in the first place.

That’s a valid point.

More broadly, one has to consider not only the bill that passed the Senate on Sunday, but other recent legislation, namely a bill to help the nation’s microchip industry.

All politicians enjoy posturing, but there comes a time when you need to act.

And that is what we’ve seen with these two bills.

Democrats are hyping Sunday’s legislation as one of the most consequential in the nation’s history in regard to fighting climate change.

That’s hyperbole to be sure, but the bill would make major investments through tax credits and other incentives to help businesses reduce pollution. It also would help people buy electric vehicles.

Also included is a provision allowing Medicare to negotiate some drug costs and the creation of a minimum tax of 15 percent for corporations that earn at least $1 billion a year and otherwise would pay no tax. And do not forget more money for the IRS.

Republican congressional candidates are going to lambaste this bill and the Democrats who vote for it. Naturally.

But it may be hard for Republicans to truly gain traction by trashing a bill designed to lower drug costs, make the likes of Amazon pay taxes and go after tax cheats.

Even if the SALT cap is still around.

(Visited 651 times, 1 visits today)

4 responses to “What about the SALT Cap?”

  1. “Republicans are going to make a big deal over the failure to get rid of the SALT cap.”

    Might want to note that the Republicans also CREATED the SALT cap which was opposed by Democrats.

  2. Manchin got his for West Virginia. Sinema got hers for Arizona.
    If our 10 Democratic members of congress have the courage to demand that the SALT provision be removed then New Jersey would get theirs.
    Our Senators caved as usual.
    Do not hold your breath for all the big time monies that fill their election coffers would dry up.
    The sad and funny part is that they really believe that we are so ignorant as to believe spending all that money will reduce their already spent money will reduce the inflation they created.and that the taxes levied on the corporations during a recession will not be there for us to pay. I hope we are not that ignorant.
    I just took out a home equity loan to fill up my pick up truck and go food shopping.
    Always remember that those new 87000 new IRS agent will be there to help you save money on your TAXES!
    You have got to be kidding me.

  3. Mr. Snowflack, remind me who passed the tax reformation package that eliminated the SALT deductions. Was it the Democrats? Did Sherrill, Gottheimer, Malinowski, Booker and Menendez vote for it? Frelinghuysen, LoBiondo and Lance voted against it but are gone! https://rollcall.com/2017/11/16/meet-the-republicans-who-voted-no-on-the-tax-bill/
    Seems you should be asking Chris Smith about this and the Republican candidates if they will push McCarthy (or may Jim Jordan) and McConnell to reverse SALT deduction elimination in the next tax bill written once they assume control.

  4. The whole SALT Cap issue is much ado about nothing. If New Jersey and the other Blue States (Democrat-Socialist States) it affects, maybe those states should do what the Cap was intended for–reduce or eliminate education taxes being linked to property taxes. Since education taxes comprise 70% or more of all property taxes in N.J. , it has become apparent that the NJ Education Association special interest is controlling property taxes in this state. Time to pass laws removing education taxes from property taxes and link it to sales taxes and/or income taxes like a majority of other states do. I don’t hear about a lot of problems with the quality of education in those majority of states. In fact, Pennsylvania, which has very low property taxes has a better school system (outside of Democrat-controlled Philadelphia and Pittsburgh) than New Jersey. My grandchildren are in the Delaware Valley School District and they are far ahead of any northern NJ school district.

    We need legislation now to remove the NJEA from controlling property taxes in NJ. They have too much power over our way of life in this state, causing many families to move out of state, and thereby losing quality graduate students (high school and college) to other states.

Leave a Reply

Your email address will not be published.

News From Around the Web

The Political Landscape