Keep the SALT Cap to Fund Real Middle Class Supports

Matt Dragon @matt_dragon
Published: 10/07/2021

In 2019 I planned to speak in support of repealing the SALT cap. Now I know I was wrong. The State And Local Tax deduction removes local and property taxes from your federal tax liability. Some say this avoids double taxation, but the numbers show it is a huge handout to the rich. Many analyses from all ends of the political spectrum have found that a repealed SALT cap overwhelmingly benefits the richest taxpayers. Promoted as protecting the middle class and vehemently defended by NJ politicians, up and down the ballot, a SALT cap repeal is a $100B gift to those far outside any middle. 

New Jersey Policy Perspective looked at NJ specific impacts and found similarly inequitable benefits flowing to our most well off residents. 90% of the benefit of those unpaid federal taxes would go to the top 20% of households earning $175k+ per year, and 50% to the 1% of households earning over $663k. Contact your Federal Representatives and tell them you want real middle class assistance, funding the care economy, fighting climate change, and a child tax credit lifting kids out of poverty. All paid for by preserving the SALT cap.

Topics: TaxesBudgetChild CareClimate ChangeFederal FundingSALTNew Jersey Policy Perspective