Sending Office: Honorable Bill Pascrell, Jr.
Reverse the damage of the State and Local Tax Deduction cap: Cosponsor the Stop Attacks on Local Taxpayers (SALT) Act of 2019
Be an original cosponsor of bipartisan, bicameral bill to restore the SALT deduction
February 8, 2019
We write to invite you to cosponsor the bipartisan, bicameral Stop Attacks on Local Taxpayers (SALT) Act of 2019.
The State and Local Tax (SALT) Deduction has been a bedrock principle of the tax code since the federal income tax was created in 1913, and the principle of state and local control of tax systems goes back to Alexander Hamilton’s writings in the Federalist
Papers. This important deduction allows taxpayers to write off taxes paid at the state and local level from their federal income tax bill so they won’t be subject to being taxed twice on the same dollar. In 2017, about 30 percent of tax filers claimed the
deduction and more than 80 percent of those filers earned under $200,000.
In addition to helping families avoid double taxation, the SALT deduction supports the ability of communities, cities, and states to raise their own revenues and fund critical investments in public education, infrastructure, social services, and public safety.
State and local investments lead to stronger economies, higher wages, and better standards of living, which not only benefit the residents of the state, but also contribute to the broader economy. That’s why virtually every public sector association, from
the National Education Association (NEA) to the National Association of Police Organizations (NAPO) vehemently opposed the “Tax Cuts and Jobs Act” [P.L. 115-97] gutting of the SALT deduction.
P.L. 115-97 imposed a $10,000 cap on SALT deductions, exposing millions of middle class taxpayers to double taxation. That means not just a higher tax bill, but also pressure on state and local budgets to either reduce critical investments or raise new
revenue though fines, fees, and other regressive streams. The Roosevelt Institute noted in a recent study, “[n]ot only are fees and fines more regressive sources of income, but they also extend the reach of a broken criminal justice system that causes enormous
economic and civic damage within communities of color.”
In states with expensive housing markets and high property and income taxes, this new limitation will pack a mean punch. For instance, in 2016 in New Jersey, 20 of 21 counties saw an average SALT deduction over the $10,000 limit, with 65% of those claiming
the deduction earning less than $200,000. This is especially unfair to homeowners who are already locked into 30-year mortgages and never priced in the possibility of this deduction going away.
The Stop Attacks on Local Taxpayers (SALT) Act of 2019 will repeal the SALT cap and fully restore the SALT deduction. At the same time, it will restore the top bracket and individual income tax rate to 39.6%, the rate at which upper income was taxed
prior to P.L. 115-97. This provides balanced progressivity to the tax code; ensures that upper-income taxpayers, regardless of where they live, will pay their fair share in taxes; and ensures middle- and lower-income families will once again fully benefit
from the SALT deduction. Communities will continue to be able to raise revenues for needed services, which will strengthen our economy and preserve a locally administered tax system as the Founders intended.
To be an original cosponsor, let us know by Monday, Feb. 11th. To cosponsor or for more information, contact Elaina Houser in Rep. Pascrell’s office at
firstname.lastname@example.org or Monica Herman in Rep. Smith’s office at
Bill Pascrell, Jr. Chris Smith
Member of Congress Member of Congress
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