Bill > SR123

This Resolution urges the federal government to eliminate the caps placed on the deduction of state and local taxes (SALT) that taxpayers can claim on their federal income tax returns. Historically, individuals who itemize their deductions could deduct property taxes and either income or sales taxes paid to state and local governments. However, the Tax Cuts and Jobs Act of 2017 limited this deduction to $10,000 per household, which disproportionately affects residents of states like New Jersey that have high property taxes and are considered "donor states" because they contribute more in federal taxes than they receive in federal funding. The Resolution argues that repealing these caps would provide much-needed financial relief to New Jersey residents, especially in the wake of the COVID-19 pandemic, and help make the state more affordable for both individuals and businesses.