Bob Menéndez Wants to Repeal Part of Trump Tax Law
Many taxpayers in high-tax, blue-leaning states are starting to file their 2018 returns and finding that one of their go-to deductions -- the state and local tax (SALT) deduction -- has been capped at $10,000 by the GOP-passed tax reforms going into effect this season. The cap on this deduction means they owe money to the federal government. Hence, Senator Bob Menéndez (D-NJ) and Congressman Bill Pascrell Jr. (D-NJ) on Monday unveiled a bipartisan, bicameral bill to repeal the federal cap on SALT deductions, which they say has led to the double-taxing of millions of middle-class Americans. The Stop Attacking Local Taxpayers Act would fully restore the SALT deduction, which has been part of the tax code since the federal income tax was created in 1913. It would also restore the top individual income tax rate at 39.6% -- the rate at which upper income was taxed prior to passage of the GOP-led tax law. “We’re just two weeks into the tax-filing season, and thousands of taxpayers across New Jersey are now fully realizing how bad the Trump Tax Law and it’s gutting of the property tax write-off is for them and their families,” said Menéndez, a senior member of the tax-writing Senate Finance Committee. “Our bill is designed to provide some relief ... Allowing property taxes to be fully deducted has been a bedrock principle of our tax code and is commonsense tax policy that rewards states that invest in things like education, public safety, infrastructure and economic opportunity for all.” More here.