Bill > SR33

This Resolution urges the United States Congress to reinstate the state and local tax (SALT) deduction without any monetary limit. The SALT deduction is a provision in federal income tax law that allows taxpayers who itemize their deductions to reduce their taxable income by the amount of state and local taxes they pay, such as property, income, or sales taxes. Historically, this deduction was unlimited, but the federal "Tax Cuts and Jobs Act" of 2017 capped it at $10,000 per household starting in 2018. The resolution highlights that this cap disproportionately affects states like New Jersey, where the average SALT deduction was significantly higher than the cap, leading to New Jersey residents paying more in federal taxes than the state receives back in federal funding, making it a "donor state." Therefore, the resolution argues for the reinstatement of an unlimited SALT deduction to provide financial relief to residents and the state.