Bill > AR224

This Resolution urges the federal government to repeal the caps on the State and Local Tax (SALT) deduction, a provision that historically allowed taxpayers who itemize their federal income tax returns to deduct state and local property taxes and either income or sales taxes. The resolution highlights that New Jersey is a "donor state," meaning it contributes more in federal taxes than it receives in federal funding, and that many New Jersey residents, particularly those with high property taxes, have been significantly impacted by the Tax Cuts and Jobs Act of 2017, which limited this deduction to $10,000 for most filers. The resolution argues that these caps have exacerbated financial hardships for New Jersey residents, especially in the wake of the COVID-19 pandemic, and that repealing them would provide much-needed relief, encourage economic growth, and make the state more affordable.

Budget and Finance