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Lower refunds amplify calls to restore key tax deduction | TheHill

posted onFebruary 25, 2019
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Article snippet: Complaints about lower refunds and higher taxes are amplifying calls from Northeast and West Coast leaders to do away with the GOP tax law’s limit on the deduction for state and local taxes. The limit on the tax break, known as the SALT deduction, has been one of the most controversial provisions of the tax law, with lawmakers from both parties in high-tax states such as New York and New Jersey arguing that the deduction cap unfairly punishes their voters.  A group of Democratic governors held a press conference on Friday to press Congress to restore the full SALT deduction. "It is appropriate that we're having this discussion in the middle of tax season as [the deduction cap] is gutting our middle class and it's just plain wrong," said New Jersey Gov. Phil Murphy. The governors' press conference comes after New Jersey Democrats Rep. MORE (N.J.), one of the few House Republicans who voted against the 2017 law and remains in office. In an op-ed for The North Jersey Record on Friday, Pascrell and Menendez called the SALT deduction cap “a main culprit for the tax sticker shock in New Jersey and other high cost-of-living states.”  The tax reform package that MORE signed in December 2017 capped the SALT deduction at $10,000. Republicans decided to limit the deduction because they thought the tax break was subsidizing higher state taxes and because limiting it could raise revenue to help pay for tax cuts elsewhere in the new law. But the new cap faced strong opposition... Link to the full article to read more

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