Reps. Sherrill, Lawler Introduce Bipartisan Legislation to Provide Relief from the SALT Deduction Cap

Washington, DC– Today, Representatives Mikie Sherrill (NJ-11) and Mike Lawler (NY-17) introduced the Middle-Class Tax Relief Act, bipartisan legislation that will provide significant relief from the unfair double taxation of the state and local tax (SALT) deduction cap to millions of families and eliminate one of the most significant marriage penalties in the tax code. This bill is a part of Congresswoman Sherrill’s Jersey STRONG agenda. 

"Since day one, my constituents have asked Congress to right the wrongs of the 2017 GOP tax bill, which punished residents in states like New Jersey with double taxation,” said Rep. Sherrill. “This legislation will eliminate the cap on SALT deductions for virtually all NJ-11 families and alleviate the burden on New Jersey workers and businesses. I came to Congress to create common-sense policies and get stuff done. By introducing this bipartisan legislation, we are one step closer to making life more affordable and improving the lives of NJ-11 families.” 

“There’s a reason New York leads the nation in out-migration and it has nothing to do with the weather. The cost-of-living is crushing families of all backgrounds and the SALT cap is a big reason why. Double-taxing residents of high tax states is unjust and unfair, and I’m proud to work with Congresswoman Mikie Sherrill and other members on both sides of the aisle to get families the relief they need. The Tax Relief for Middle Class Families Act will lift the cap on the SALT contribution by tenfold, giving real relief to families across our country,” said Rep. Lawler.

This legislation raises the cap on SALT deductions from $10,000/household to $100,000/single filer and $200,000/married couple. It will fully eliminate the SALT deduction cap for 99% of NJ-11 families and allow residents to deduct an additional $8 billion in state and local taxes over the next three years. 

The 2017 Trump Tax Act imposed a $10,000 cap on the SALT deduction. This policy violates 150 years of precedent in federal tax law, disproportionately harms New Jersey, and unfairly imposes a marriage penalty on couples filing jointly by having them face the same $10,000 cap as individuals.

This month, Rep. Sherrill unveiled her Jersey STRONG agenda, which includes the first five pieces of legislation she is introducing in the 118th Congress. With this bill package, Congresswoman Sherrill will continue to fight for New Jersey by:

Saving the SALT Deduction

Taking Care of our Veterans

Reining in Auto Thefts

Optimizing Women's Health Care

Nominating More Labor Representatives

Getting Stuff Done

###