Pandemic Darlings The pandemic economy, in original documents
Home Source documents Assembly Commerce and Economic Development Committee Statement to Assembly Resolution, No. 193 (2020)

Assembly Commerce and Economic Development Committee Statement to Assembly Resolution, No. 193 (2020)

Summary

A statement of the New Jersey Assembly Commerce and Economic Development Committee to Assembly Resolution No. 193, dated October 21, 2020, reporting the resolution favorably. The resolution urges the federal government to raise the state and local tax (SALT) deduction to $25,000. The statement says that in 2014 over 41 percent of New Jersey residents who filed federal income tax returns and itemized claimed the SALT deduction. It notes that the federal "Tax Cuts and Jobs Act," Pub.L. 115-97, capped the deduction at $10,000 for most filers beginning in tax year 2018.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Cite this document

“Assembly Commerce and Economic Development Committee Statement to Assembly Resolution, No. 193 (2020).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/ar193-ace-statement-10-21-20-bdc4b97b3a/, SHA-256 71c3774a4b3f68d729cbe0d5792bec89704d8bb526a73d9f60697c3f25e7d762.

Full text

ASSEMBLY COMMERCE AND ECONOMIC DEVELOPMENT COMMITTEE

STATEMENT TO

ASSEMBLY
RESOLUTION No. 193

STATE
OF NEW JERSEY

DATED: OCTOBER
21, 2020

The Assembly Commerce and Economic Development
Committee reports favorably Assembly Resolution No. 193.

This
resolution urges the federal government to raise the state and local tax (SALT)
deduction to $25,000. Since 1913, Americans have had the option of using the
SALT deduction when they file their federal income tax returns. Under the SALT
deduction, federal taxpayers who itemize on their returns, rather than claim
the standard deduction, may deduct state and local real estate and personal
property taxes as well as either state and local income or sales taxes.

New
Jersey is a “donor state,” meaning that the State pays more in federal taxes
than it receives in federal funding. The SALT deduction provides an indirect
federal subsidy to states such as New Jersey by decreasing the net cost of
nonfederal taxes to those who pay them. In 2014, over 41 percent of New Jersey
residents who filed federal income tax returns and itemized their taxes claimed
the SALT deduction on their returns.

The
federal “Tax Cuts and Jobs Act,” Pub.L. 115-97, which was enacted in December
2017, capped the SALT deduction to $10,000 for most filers beginning in tax
year 2018. Given the enormous fiscal benefits that the SALT deduction provides
to New Jersey residents and the State, and given the disparity in the amount
that New Jersey residents pay in federal taxes in comparison to the amount that
they receive in federal funding, the federal government should raise the SALT
deduction to $25,000.

File and source

File
2020-10-21_ACE_AR193_S1.htm
Size
6,315 bytes
SHA-256
71c3774a4b3f68d729cbe0d5792bec89704d8bb526a73d9f60697c3f25e7d762
Our copy
2020-10-21_ACE_AR193_S1.htm
Original
No public link identified.
Back to top