Posted on 05/12/2019 11:33:56 AM PDT by Tolerance Sucks Rocks
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:
“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.
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PING!
This makes for a more fair SALT system without necessarily encouraging high-tax states to send their “revenues” to the moon.
I support citizens of New York and such paying their fair share.
They lived high on the hog too long. It is time for reality to set in
High tax states need to reduce tax, not be subsidized.
+ 10,000
The Federal government should stay out of this.
Let those corrupt states with high taxes fix the problem.
I say this as a refugee from New Jersey.
THE STATE IS RESPONSIBLE, THE STATE SHOULD BE THE ONE TO FIX IT.
SALT was not only introduced with the 1913 income tax bill following ratification of the 16th Amendment, it was also included with the 1884 income tax that was thrown out by the Supreme Court. SALT also comes from a time when Senators were appointed by state legislatures, which seems to confirm to me that SALT was a nod to state sovereignty, not a sop for wealthy, higher-tax states.
However, of course, full SALT seems to allow greater dependence on state government (already too much dependence at the federal level), while the states can send their taxes to the moon under cover of SALT.
What I would do is to limit salt to 1/2 of what it was before tax reform, but to help alleviate the pain of having it cut in half, I would allow both income and sales taxes to count, rather then the either-or system they have now. So the formula would be 1/2 (property + income + sales).
Hopefully, this would provide some relief, while keeping states from sending their “revenues” to the moon.
That is molly coddling. A kumbaya approach to taxation is not required.
The recent tax cut law ended the farce of deducting state income taxes from the federal tax due.
He is sooooo right about that.
When you hear them talking about “sweeping, bipartisan, comprehensive legislation” you know Americans are in for an epic screwing.
The Republicans probably lost 12 to 15 seats because of the SALT increase. Especially in California, New Jersey, and Pa.
They lived high on the hog too long. It is time for reality to set in.
I live in NYS and a agree. And BTW, lifting the cap just enables our pols to keep screwing us silly.
Over the last 6 decades or so NYS has lost almost HALF its House seats. Rumor has it that after the next census we’ll lose 1 to 2 more. The SALT cap is the LEAST of our problems.
I support this.
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Likely because it personally benefits YOU by subsidizing your state’s high taxes. I live in Maryland with high state & local taxes so the selfish side of me can understand the inclination.
But HELL NO....if anything we should be lowering or, better yet, eliminating SALT deductions. No more subsidies for the ambitions of Blue State ‘RAT politicians. Let their destruction of wealth be FULLY visible to their voters.
So...let’s give NOT AN INCH of the SALT deduction front.
I am completely against this.
It’s all liberals supporting it.
Get your head out.
“The Republicans probably lost 12 to 15 seats because of the SALT increase. Especially in California, New Jersey, and Pa.”
So, bottom line, people in blue states are in favor of taxpayers paying their fair share—as long as it isn’t them. Got it,
I don’t.
I don’t support this. SALT is key. We need to keep and defend it. It will, in time, reduce NY taxes. And it does reduce the national debt. I myself pay more taxes now with the SALT. Because I have two homes, one in Illinois.
But SALT stops states from raising property taxes. It should be $5000 for individuals and $10000 for married couples. So if they fixed it by lowering the individuals that would be fine. But they won’t. They will go the other way which is almost the same as removing it all together.
Right now SALT is having a huge affect on home ownership. In my area where virtually every home is over a million dollars, homes are for sale everywhere. And there are some buyers. They don’t stay on the market forever. But the prices are the same as they were in 1999. Thats higher than 2002 and higher than 2009. But basically the homes in high tax states are staying the same because of taxes. As it should be. Otherwise states will continue to raise taxes and pass those taxes on to the federal government.
The real estate lobby and blue states may not like it. But its best for our country. SALT is the right thing. Defend it.
I’m shocked there were seats in CA to lose.
Third rule of taxation my instructor in my tax income tax course in college (part of getting a BS in Accounting):
"The Only Fair Tax Is The Tax That Taxes You And Not Me"
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