State reps. launch fight to reinstate tax deductions taken away by Trump admin.

<p>Two of New Jersey&rsquo;s representatives in Congress say that they have officially launched their fight to reinstate the state and local tax (SALT) deductions taken away by the Trump administration.</p>

News 12 Staff

Nov 20, 2018, 1:54 PM

Updated 1,991 days ago

Share:

Two of New Jersey’s representatives in Congress say that they have officially launched their fight to reinstate the state and local tax (SALT) deductions taken away by the Trump administration.
Under the new federal tax reform, Americans are only able to deduct up to $10,000 in state and local taxes on their tax returns. But many New Jerseyans pay more than that. New Jersey has the highest property taxes in the nation.
Reps. Bill Pascrell and Josh Gottheimer held a media event in Ramsey, in front of a salt dome to emphasis their point.
“New Jerseyans don’t like being disrespected. We don’t like being targeted,” Pascrell said.
When federal tax reform went into effect, lowering income and corporate taxes, the full deduction for costly property taxes paid by many New Jersey homeowners went away.
Gov. Phil Murphy and other state leaders tried to create workaround after the federal tax reform went into effect. Murphy signed a bill that would allow New Jersey towns to set up charitable funds for their residents to donate 90 percent of their tax bills to, in exchange for tax credits. It would allow them to avoid the $10,000 cap.
But the IRS pushed back against that plan. The agency said that it gets to decide what is deductible, not states.
Pascrell and Gottheimer now say that with Democrats in control of the U.S. House of Representatives, reinstating the tax has a chance. But the Senate and President Donald Trump would need to reverse course on a major piece of Trump’s agenda.


More from News 12
0:45
Fire chief: 20 people displaced in Elizabeth fire that damaged businesses and apartments

Fire chief: 20 people displaced in Elizabeth fire that damaged businesses and apartments

2:05
Aftermath of deadly house explosion in South River shows home blown into pieces

Aftermath of deadly house explosion in South River shows home blown into pieces

2:03
Cooler temps today in the 60s for New Jersey ahead of some wet weather this weekend

Cooler temps today in the 60s for New Jersey ahead of some wet weather this weekend

0:18
South Brunswick police searching for missing man last seen on Route 1

South Brunswick police searching for missing man last seen on Route 1

0:38
Knicks advance to the Eastern Conference semis, topping 76ers 118-115 in Game 6

Knicks advance to the Eastern Conference semis, topping 76ers 118-115 in Game 6

2:44
Main Street New Jersey: Restaurants, businesses to visit in Edgewater

Main Street New Jersey: Restaurants, businesses to visit in Edgewater

1:12
Several house fires break out Thursday in New Jersey; 1 man dead

Several house fires break out Thursday in New Jersey; 1 man dead

0:23
South Orange woman indicted for stealing over $1 million federal benefits intended for dead aunt

South Orange woman indicted for stealing over $1 million federal benefits intended for dead aunt

2:10
Paws & Pals: Lilypad now up for adoption with AHS Newark

Paws & Pals: Lilypad now up for adoption with AHS Newark

0:33
Experts fear 'catastrophic' college declines thanks to botched FAFSA rollout

Experts fear 'catastrophic' college declines thanks to botched FAFSA rollout

3:46
Traffic Alert: I-95 closed until at least Monday in Norwalk. Here's how the tanker fire is affecting the area

Traffic Alert: I-95 closed until at least Monday in Norwalk. Here's how the tanker fire is affecting the area

10 organizations to donate to in support of the Asian American and Pacific Islander communities

10 organizations to donate to in support of the Asian American and Pacific Islander communities

1:26
Look up! Annual Eta Aquarid meteor shower peaks early Sunday morning

Look up! Annual Eta Aquarid meteor shower peaks early Sunday morning

1:20
Pro-Palestinian protest that postponed final exams at Rutgers ends peacefully

Pro-Palestinian protest that postponed final exams at Rutgers ends peacefully

0:36
Jersey Proud: Police officers gather for town cleanup in memory of fallen officer

Jersey Proud: Police officers gather for town cleanup in memory of fallen officer

2:17
Bound Brook starts Lithium Ion Identification Program to help firefighters identify risks

Bound Brook starts Lithium Ion Identification Program to help firefighters identify risks

0:57
Funeral services held in Newark for Rep. Donald Payne, Jr.

Funeral services held in Newark for Rep. Donald Payne, Jr.

0:22
Prosecutor: 61-year-old man dies in Jersey City high-rise fire

Prosecutor: 61-year-old man dies in Jersey City high-rise fire

NJ Transit teams with BetMGM to provide rail service to MetLife Stadium concerts

NJ Transit teams with BetMGM to provide rail service to MetLife Stadium concerts

0:46
Car crashes into Hasbrouck Heights apartment building; residents evacuate

Car crashes into Hasbrouck Heights apartment building; residents evacuate