Democratic NJ representatives: No SALT cap repeal, no support for budget

Four Democratic members of New Jersey's congressional delegation have joined together and pledged to oppose a budget reconciliation package unless it includes a restoration of state and local tax deductions.

Reps. Bill Pascrell, Mikie Sherrill, Josh Gottheimer and Tom Malinowski, forming a "New Jersey SALT Strike Team" held a news conference in Englewood on Friday afternoon, detailing their demands for a full repeal of what they called "the disastrous cap" on the state and local tax (SALT) deduction.

In 2017, SALT deductions were capped at $10,000, representing a significant tax hit for many homeowners in North Jersey. The first draft of President Joe Biden’s $3.5 trillion social welfare package, which was being discussed this week, did not include a repeal of this cap.

In an interview earlier this week, Sherrill, D-Montclair, vowed not to support the $3.5 trillion package and said Democrats are hoping to pass the package through the process of reconciliation, which requires only a simple majority, without the threat of a filibuster in the Senate.

The group plans to oppose the budget reconciliation package unless there is a restoration of the SALT deduction included in the final version of the bill before it hits the House of Representatives floor.

The press conference was held in front of the home of Gerald Greif, who works as a consultant in the jewelry industry. Greif said it's been difficult for him during the pandemic and that a tax break of any kind would "help greatly."

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The cap, imposed during the Trump administration, effectively increased federal taxes on many in New Jersey, which has the highest property taxes in the nation. In Englewood, the average property tax is around $13,000 a year. 

"I’m proud to stand alongside my colleagues today and make it clear that we’re fighting for SALT relief for New Jersey families," said Sherrill during the press conference. "This is an issue that impacts teachers, firefighters, first responders, and everyday working families in my district."

Gottheimer said that if the SALT deduction was reinstated, nearly a third of New Jersey residents — almost 3 million people — would get tax relief.

"We will only vote for a reconciliation package on the House floor that reinstates SALT," said Gottheimer. "This is about getting more money back into the pockets of Jersey’s middle-class families and stopping double taxation that only benefits 'moocher states,' which is why we are standing firm. No SALT, no dice."

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Pascrell said that despite what some Republicans are saying, SALT is "all about the middle class."

"What is middle class and middle income in Oklahoma or South Dakota or Wyoming isn’t the same in New Jersey, where we face much higher costs of living," said Pascrell. "Paraphrasing Rodney Dangerfield, New Jersey gets no respect with these SALT lies. There is no Build Back Better and no rebuilt America without a restored SALT deduction. Any legislation we approve in the full House must include it. Period."

Stephanie Noda is a local reporter for NorthJersey.com. For unlimited access to the most important news from your local community, please subscribe or activate your digital account today.

Email: noda@northjersey.com 

Twitter: @snoda11