Pascrell reinstates the repeal of the republican center class tax hike

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The Assembly Committee votes yes to legalization to make progress on community reinvestment but urges proponents to continue their work on justice measures

Pascrell reinstates the repeal of the republican middle class tax hike

The legislation will completely restore the tax deduction of federal states and municipalities and bring the top marginal rate back to the level before 2017

WASHINGTON, DC – US Rep. Bill Pascrell, Jr. (D-NJ-09), New Jersey’s only House Ways and Means Committee member who writes taxes, today reintroduced its updated legislation to lower the federal limit for states and Municipalities completely abolish tax deduction (SALT) under the Trump Tax Law of 2017.

“This year, middle-class Americans are being squeezed like lemons not only by the pandemic, but also by the GOP tax fraud that increased their taxes by arbitrarily limiting the SALT deduction.” said Rep. Pascrell, who for years led Congressional opposition to the SALT cap. “Even before the state and local authorities were exposed to the pandemic, there was a growing risk for critical services such as the police, fire brigade and teachers due to the pressure from the SALT cap. Americans in states hardest hit by the SALT cap are already heavily taxed. The complete removal of the SALT cap will benefit middle-income families and communities in New Jersey. By raising the maximum rate to the pre-fraud level, a critical level of tax justice will be restored to our weird tax system. The New Jersey people know I won’t rest until they see relief from the SALT cap. “

The Stop the Attack on Local Taxpayers (SALT) act will exceed the $ 10,000 limit and fully restore the SALT deduction. The measure offers families struggling during the pandemic further tax breaks and also removes the cap retrospectively. In addition, the Pascrell Plan restores the highest individual income tax rate to 39.6%, the rate at which the highest tax bracket was taxed before the Trump tax bill was passed. The Trump Tax Law, rammed on a party line by Republican-controlled Congress in December 2017, gave huge tax breaks to super-rich and giant corporations while raising taxes for the middle class and capping salt at $ 10,000.

The SALT Withholding allows state and local taxpayers to write off taxes paid off their federal income tax return so they don’t have to be taxed twice on the same dollar. In addition to helping families avoid double taxation, the SALT deduction supports the ability of municipalities, cities, and states to grow their own revenues and fund critical investments in public education, infrastructure, social services, and public safety. This bill would also allow teachers and first responders to deduct the costs associated with their work. These provisions were passed in 2019 in connection with the SALT ceiling for the House of Representatives.

State and local tax withholding has been part of tax law since federal income tax was introduced in 1913, and harks back to federal income tax for the Civil War when President Lincoln had to fund union troops with state taxes, but allowed for deduction.

In 2017, about 30% of taxpayers requested the deduction, and more than 80% of those claimants earned less than $ 200,000 – middle-class in high-cost-of-living states. In New Jersey, 1.9 million taxpayers deducted their local property and state income taxes in 2017, which is roughly 42% of New Jersey taxpayers, which averages $ 19,162 per deduction.

The SALT Act is sponsored by Representatives Pascrell, Donald Norcross (D-NJ-01), Andy Kim (D-NJ-03), Frank Pallone Jr. (D-NJ-06) and Albio Sires (D-NJ-) . 08), Donald Payne Jr. (D-NJ-10), Mikie Sherrill (D-NJ-11), Bonnie Watson Coleman (D-NJ-12), Joe Courtney (D-CT-02) and Jimmy Panetta (D -CA-20).

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