President Joe Biden wants to raise taxes on corporations to pay for his $2 trillion infrastructure plan unveiled Wednesday. However, some congressional Democrats, including two from New Jersey, say they won’t agree to that unless Biden does away with a Trump-era tax cap.
“No SALT, No deal,” U.S. Reps. Bill Pascrell and Josh Gottheimer said in a joint statement with New York U.S. Rep. Tom Suozzi.
I've got a few words for anyone considering altering federal tax rates for families in North Jersey:
— Rep Josh Gottheimer (@RepJoshG) March 30, 2021
No SALT, No Dice // No SALT, No Deal! 🎲
See the statement below from my colleagues @BillPascrell, @RepTomSuozzi, & me: pic.twitter.com/DFd22JgDSt
SALT refers to state and local taxes. Deductions on SALT were capped to $10,000 under the federal tax overhaul signed by former President Donald Trump in 2017. Corporate taxes were also slashed to 21% from 35% under that plan.
Under Biden’s proposal to address the nation’s aging infrastructure, corporate taxes would be raised to 28% to help pay for roads, bridges, upgrading utilities, and other projects.
Pascrell, who chairs the House Ways and Means Committee, said along with Gottheimer and Suozzi that the SALT cap has caused some residents to leave for other states.
“This impacts middle and lower-income residents in high cost of living states who are left to make up the difference,” the congressmen said. They warned that vital public services face “savage cuts” if relief does not come soon.
“We will not accept any changes to the tax code that do not restore the SALT deduction and put fairness back into the system,” they added.
New Jersey, along with New York, was expected to be hit the hardest with the SALT deduction cap. Gov. Phil Murphy was among the most vocal critics of the cap, saying it would unfairly affect Garden State residents. He said Wednesday that the state was “crushed” by the SALT cap.
“I think it was completely political by the last federal administration,” he said. “I’m happy that the Secretary of the Treasury Janet Yellen has expressed broad sympathy and support for addressing that and so we’ll see whether or not it ends up a part of this infrastructure plan.”
“I sure as heck don’t blame Congressman Pascrell or Congressman Gottheimer for having that opinion,” Murphy added.