NJ Senator Wants Bipartisan Effort To Save SALT, Protect Families

A New Jersey state senator says that there is a simple way to protect hardworking families in the state from the finance-crushing, recently passed federal tax reform law that is expected to strip them of thousands of dollars in local deductions.

Cooperation.

On Thursday, Sen. Joe Pennacchio, a Republican who represents the 26th District, announced that he plans to introduce a resolution to urge Congress to make the individual tax cuts permanent and to revisit the state and local taxes (SALT) deduction cap in the 2018 legislative year.

The key to the effort will be bipartisanship, he stressed.

“This is not a Republican issue, nor a Democratic one,” Pennacchio said. “In the past, both parties were able to set aside their differences and work on tax reform together for hardworking Americans.”

Think that the idea of Democrats and Republicans cooperating is crazy? Think again, Pennacchio said.

“In 1986, Congressional bipartisanship saved the SALT deduction and led to the passage of tax reform with votes from both sides of the aisle,” Pennacchio stated. “By working together, Congress created long-term relief for families and retirees.”

• See related article: When New Jersey Dems, GOP Agree: Going Beyond Blue And Red

Under the new federal tax reforms, New Jersey families face a $10,000 cap on deducting their state and local property taxes from their federal taxes. The new law also provides no long-term plan for property tax relief after it expires in 2025, according to Pennacchio.

But if the Democrats and Republicans manage to find common ground, they may be able to work together to secure enough votes to get past the filibuster and begin reinstating SALT and providing permanent tax relief for middle-class families, Pennacchio said.

• See related article: Chris Christie Issues Order Allowing You To Prepay 2018 NJ Taxes

“The new law creates many challenges in the upcoming 2018 tax year and results in a halt of relief after the law expires,” said Pennacchio. “By introducing new legislation, Republicans can protect our hardworking families and Democrats can become engaged instead of sitting on the sidelines and complaining.”

Pennacchio represents New Jersey’s 26th District, which includes Butler, Fairfield, Jefferson, Kinnelon, Lincoln Park, Montville, Morris Plains, North Caldwell, Parsippany-Troy Hills, Rockaway Township, Verona, West Caldwell and West Milford.

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