Tri-State Area lawmakers push to repeal SALT cap as Trump prepares to take office
LEONIA, N.J. — With the inauguration of Donald Trump happening next week, there's a new push to repeal the so-called SALT cap on state and local tax deductions.
Lawmakers on both sides of the aisle think there's a chance.
The $10,000 cap on itemized deductions for state and local taxes, known as SALT, means a bigger tax bill for many suburbanites in high-tax states like New York and New Jersey.
"This is a middle class issue"
New Jersey Rep. Josh Gottheimer spoke to reporters in front of a road salt barn in Leonia on Friday, a not-so-subtle jab at the 2017 SALT cap.
"This is not a one percenter issue. This is middle class issue for New Jersey," he said.
Gottheimer, a Democrat, now joins Republicans in high-tax states in pushing to repeal the cap or let it expire later this year.
Some blue state Republicans are appealing to the incoming president for help with SALT. It was Trump's tax policy that enacted the cap to begin with.
Who will benefit if the SALT cap is eliminated?
Tax experts say increasing or eliminating the cap only benefits those who itemize deductions.
"So people who are currently itemizing will clearly get the most significant benefit. People who don't itemize, it may push them into being able to itemize. So instead of taking a $30,000 standard deduction, they might be at $35,000," said E. Martin Davidoff, an attorney and CPA with Prager Metis.
John Lorenzo, owner of Johnny's Haircuts and Shaves in downtown Leonia, says he takes a haircut on his tax bill every year.
"Property taxes here in Jersey are extremely high, he said.
He says it's time to edge out the SALT cap.
"Yeah, I think it would benefit a lot of people," Lorenzo said.