House Democrats from the state have been pushing to have the SALT deduction lifted since the allowance for State and Local Taxes was limited to $10,000 during a tax bill in 2017.
The deduction was elevated to $40,000 (for those making under $500,000) in the tax bill passed late Wednesday/early Thursday, but not a single N.J. Democrat voted for the increase.
The reason: The increase was part of a bigger bill that would see huge cuts to other services to New Jerseyans, especially those in lower-income brackets.
Changes to the deduction would go into effect in 2025 and the income phaseout would increase annually by 1% from 2026-33.
A victory for those railing against SALT. Not really.
In fact, Gov. Phil Murphy called out the Republicans in Congress who voted for the bill.
“Congressmen (Tom) Kean, (Chris) Smith and (Jeff) Van Drew shamefully voted to approve these devastating cuts and caved on fully repealing the SALT deduction in order to shower billionaires and gun manufacturers with budget-busting tax breaks that will explode our deficit,” he said.
