Bill
Bill > SR22
summary
Introduced
01/09/2024
01/09/2024
In Committee
01/09/2024
01/09/2024
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
This resolution urges Congress to reinstate the unlimited state and local tax (SALT) deduction. For over 100 years, the SALT deduction has been available to American taxpayers. The SALT deduction allows federal taxpayers who itemize deductions on federal income tax returns the option to deduct payments for state and local taxes from federal income tax liability. This deduction is a significant financial benefit to both New Jersey residents who pay federal taxes and the State itself. In 2017, the federal government limited the amount of the SALT deduction to $10,000, whereas the average SALT deduction taken by New Jersey taxpayers was almost double that amount. New Jersey is considered to be a "donor state" because the amount of federal taxes paid by New Jersey's residents exceeds the amount that the State receives back in federal funding. In 2018, the State of New Jersey received the least amount of federal funding of any state. Congress should reinstate the SALT deduction without limitation in order to remedy some of this tax disparity.
AI Summary
This resolution urges the United States Congress to reinstate the state and local tax (SALT) deduction without limitation. The SALT deduction, which has been available to American taxpayers for over 100 years, allows taxpayers who itemize deductions to reduce their federal income tax liability by deducting state and local real estate, personal property, income, or sales taxes. Historically, New Jersey residents benefited significantly from this deduction, with over 41 percent of state taxpayers claiming it in 2014 and an average deduction of $19,089 in 2017. However, the 2017 federal Tax Cuts and Jobs Act limited the SALT deduction to $10,000, which negatively impacted New Jersey taxpayers. The resolution highlights that New Jersey is a "donor state," receiving only 79 cents back for every dollar paid in federal taxes in 2018, which is the least amount of federal funding received by any state. By calling for the unlimited reinstatement of the SALT deduction, the resolution aims to provide financial relief to New Jersey residents and address the state's disproportionate federal tax contributions.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Budget and Appropriations Committee (on 01/09/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/SR22 |
| BillText | https://pub.njleg.gov/Bills/2024/SR/22_I1.HTM |
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