Murphy urges Pelosi to eliminate SALT cap through coronavirus relief package


Governor Phil Murphy. | Getty Images

New Jersey governor Phil Murphy said Tuesday that he had asked the spokesman Nancy Pelosi as part of an upcoming economic stimulus package to push for a lifting of the upper limit for state and local tax deductions.

“While we continue to think about an incentive for Main Street, Congress should lift the SALT deduction cap to help middle-class New Jersey homeowners,” Murphy said during his daily coronavirus press conference, adding that that he had specifically asked Pelosi to lift the cap on Monday during two talks.

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Since taking office in 2018, Murphy, a progressive chairman of the Democratic Governors Association, has repeatedly urged Congress to lift the SALT cap – an element of the 2017 federal tax law that provides for a $ 10,000 cap on state and local deductions.

The upper limit disproportionately affects residents of New Jersey, New York and other high-tax states. Last year, New Jersey, New York, and Connecticut sued the Trump administration and challenged the rules of the Internal Revenue Service, which prohibit certain workarounds for limiting state and local tax deductions.

Shortly after Murphy’s comments on Tuesday, Rep. Josh Gottheimer (DN.J.) released a statement in which he “asked the leadership to fully reinstate our SALT deduction in the next coronavirus relief package to receive real tax cuts to help families in Jersey face this health and economic crisis to rescue.”

At his press conference, Murphy thanked Gottheimer and Rep expressly. Bill Pascrell (D-N.J.) For calling for removal of the SALT cap while Congress controls its coronavirus response.

Murphy previously partnered with New York Governor Andrew Cuomo, Connecticut Governor Ned Lamont, and Pennsylvania Governor Tom Wolf to find a $ 100 billion emergency aid package for northeastern states most severely affected by the virus were.

While Murphy was generally a compliment to the $ 2 trillion that President Donald Trump signed last week, he also said he didn’t go far enough.

The next stimulus package should include special aid for workers and businesses affected by the pandemic, and “flexible aid for countries that bear the brunt of this virus,” Murphy said. “New Jersey and New Jerseyans that are in the eye of the storm should not be treated like states that are less affected by this invisible enemy.”

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