Kean Jr.: Restoration of SALT is priority No. 1. It’s how we’ll provide tax relief. | Opinion

By Tom Kean, Jr.

In Congress, it is my job to fight for the best interests of the hardworking individuals and families who call our state home. One critical issue that continues to burden our residents is the cap on the State and Local Tax Deduction (SALT), estimated to impact more than 425,000 families across the state. It is long past time we restore this essential deduction and provide much-needed tax relief for New Jerseyans.

The SALT Deduction has long been a pillar of our tax code, allowing taxpayers to deduct the state and local taxes they pay from their federal tax returns. However, the Tax Cuts and Jobs Act of 2017 (TCJA) instituted a $10,000 cap on the SALT deduction, placing an undue burden on our residents and hindering our state’s economic growth.

New Jersey has among the highest property taxes in the nation. By reducing the SALT deduction, our residents are effectively forced to pay taxes on their income twice. This unfair and burdensome policy discourages economic growth and has had a detrimental impact on middle-class families’ bottom line.

In New Jersey’s Seventh Congressional District, which I represent, the average deduction before the TCJA was signed into law was $19,072. Those are real, hard-earned dollars that in a time of rising costs are more important than ever to families. Small businesses, the backbone of our economy, also suffer as consumers tighten their belts due to increased tax liabilities.

Restoring the SALT Deduction is not just an issue of fairness; it is also a matter of economic prosperity. By restoring this deduction, we can provide immediate tax relief to hardworking families. More money in their pockets means increased spending on goods and services, which, in turn, drives economic growth and creates jobs. It’s a win-win situation that benefits not only the residents of New Jersey but also our local businesses and the state as a whole.

Restoration of the deduction is also crucial for attracting and retaining businesses in our state. New Jersey offers a highly skilled workforce, a strategic location, and robust, expanding infrastructure. However, the tax burden created by the elimination of the SALT Deduction sends the wrong message to businesses looking to invest or relocate. By restoring this deduction, we will make New Jersey a more attractive destination, fueling job creation and bolstering our economy.

In Congress, I have made it clear to my colleagues that any economic package moving through the U.S. House of Representatives MUST include restoration of the SALT Deduction. I will not support a package that fails to deliver this tax relief for my constituents. This issue transcends party lines; it is about fighting for the well-being of our constituents and ensuring a fair and equitable tax system.

To achieve our goal, we must continue to build coalitions, reach across the aisle, and emphasize the urgent need for action. I will not rest until the people of New Jersey have their voices heard, and their hard work and contributions to our state’s economy are duly recognized.

Restoring the SALT Deduction is not a mere policy change; it is a statement of support for the hardworking individuals and families of New Jersey. It is a commitment to fairness, economic growth, and the prosperity of our state. I call upon my colleagues in Congress to join me in this fight, to stand with the people of New Jersey, and to restore the state and local tax deduction without delay.
 
Together, we can ensure a brighter future for our state, where hard work is rewarded, economic opportunities flourish, and the burdens of taxation are justly shared.

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