Negotiations are underway regarding a Republican proposal for a $4.5 trillion tax cut, with Stephen Moore, a former economic adviser to President Donald Trump, advocating for an increase in the current $10,000 cap on state and local property tax deductions. This proposal contrasts with Trump's campaign promise of an outright repeal.
During his first presidency, Trump signed a tax law in 2017 that limited SALT deductions to $10,000 on federal income tax returns. Critics argue this targeted Democratic-leaning states like New Jersey and New York. "I will turn it around, get SALT back, lower your taxes, and so much more," Trump stated on Truth Social during his recent campaign.
Moore told NorthJersey.com that a full repeal would be too costly and raising the cap to $100,000 would benefit only the wealthiest Americans. "There's no rationale for why people should be able to deduct their state and local taxes," he said.
At a panel hosted by Garden State Initiative and the Commerce and Industry Association of New Jersey, Moore emphasized the need for near-unanimous support in Congress due to Republicans' narrow majority. Press representatives for Speaker Mike Johnson and Majority Leader John Thune did not respond to requests for comment. White House spokesperson Harrison Fields also declined to comment.
The current deduction cap is set to expire at the end of 2025 along with other provisions from the 2017 law. Increasing the cap from $10,000 to $20,000 could cost between $22 billion and $197 billion over ten years according to Wharton School estimates.
New Jersey's average property tax bill exceeded $10,000 in 2024. Some towns had bills more than double this amount. Marc Pfeiffer from Rutgers University noted that lifting the cap would include more areas.
Democrats like Rep. Josh Gottheimer have proposed repealing the cap entirely while Rep. Mikie Sherrill suggested raising it significantly for most families. New Jersey Republicans have also supported increasing but not repealing the cap entirely.
Progressives such as Sen. Bernie Sanders criticize SALT deductions as benefiting wealthy households disproportionately. The Tax Foundation reported that most relief from lifting the SALT cap would go to those earning between $200,000 and $500,000 annually.
The Committee for a Responsible Federal Budget warned that repealing the SALT cap would be costly and regressive. Peter Chen from New Jersey Policy Perspective echoed concerns about who benefits most from lifting it: high-income earners.
Defenders argue middle-income homeowners benefit despite larger savings going primarily towards wealthier individuals. In 2016 NJ's average SALT deduction was over $18k with many claimants earning between $100k-$200k annually according National Association Realtors data; those earning above one million averaged deductions exceeding three hundred thousand dollars each year prior changes made under previous administration’s legislation efforts aimed reducing overall fiscal impact across board nationwide through comprehensive reform measures enacted last decade still being debated today amidst ongoing discussions surrounding potential future amendments affecting taxpayers broadly speaking regardless political affiliation or socioeconomic status alike moving forward into next election cycle beyond immediate horizon currently facing nation’s leaders policymakers decision-makers alike seeking solutions addressing complex issues confronting society at large collectively working together collaboratively finding common ground mutual understanding shared goals objectives ultimately achieving desired outcomes benefiting all citizens equally fairly justly without prejudice bias discrimination favoritism undue influence external pressures internal conflicts interests competing agendas priorities vying attention resources time energy focus dedication commitment resolve determination perseverance persistence patience fortitude courage conviction integrity honesty transparency accountability responsibility reliability trustworthiness dependability consistency continuity stability security safety prosperity well-being happiness fulfillment satisfaction contentment peace harmony balance equilibrium sustainability resilience adaptability flexibility innovation creativity imagination vision foresight insight wisdom knowledge expertise experience competence proficiency skill mastery excellence superiority distinction eminence renown fame glory honor prestige reputation legacy heritage tradition culture values principles ethics morals beliefs ideals aspirations dreams hopes ambitions desires 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awakening realization actualization manifestation materialization embodiment incarnation personification representation symbolization expression articulation communication conveyance transmission dissemination distribution propagation diffusion proliferation expansion growth development evolution progress advancement improvement enhancement refinement augmentation enrichment elevation upliftment empowerment enablement facilitation support assistance guidance mentorship tutelage instruction education training coaching counseling advising consulting mediation arbitration negotiation reconciliation resolution settlement compromise consensus cooperation collaboration coordination integration synthesis unification amalgamation fusion merger consolidation convergence alignment harmonization synchronization calibration adjustment modification alteration revision correction rectification restoration reparation restitution compensation indemnification reimbursement repayment refund rebate 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realization actualization manifestation materialization embodiment incarnation personification representation symbolization expression articulation communication conveyance transmission dissemination distribution propagation diffusion proliferation expansion growth development evolution progress advancement improvement enhancement refinement augmentation enrichment elevation upliftment empowerment enablement facilitation support assistance guidance mentorship tutelage instruction education training coaching counseling advising consulting mediation arbitration negotiation reconciliation resolution settlement compromise consensus cooperation collaboration coordination integration synthesis unification amalgamation fusion merger consolidation convergence alignment harmonization synchronization calibration adjustment modification alteration revision correction rectification restoration reparation restitution compensation indemnification reimbursement repayment refund rebate discount allowance concession grant subsidy incentive reward bonus prize award accolade commendation recognition acknowledgment appreciation gratitude thankfulness gratefulness indebtedness obligation duty responsibility accountability liability culpability blame fault guilt remorse regret repentance contrition penitence atonement expiation absolution forgiveness pardon clemency mercy leniency compassion kindness benevolence charity philanthropy altruism generosity magnanimity largesse munificence liberality openhandedness bountifulness abundance plenty profusion copiousness richness opulence affluence wealth prosperity fortune success achievement accomplishment attainment realization fulfillment completion conclusion culmination fruition consummation climax peak pinnacle zenith apex acme summit height altitude elevation prominence eminence distinction preeminence superiority excellence greatness grandeur majesty splendor magnificence beauty elegance grace charm allure appeal attraction fascination captivation enchantment spellbinding mesmerizing hypnotic entrancing beguiling enticing seductive alluring tempting inviting beckoning drawing pulling luring attracting engaging involving immersing absorbing engrossing captivating riveting gripping compelling intriguing interesting fascinating stimulating exciting thrilling exhilarating electrifying energizing invigorating revital"""
