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TRENTON Gov. Phil Murphy on Friday led a coalition of governors representing states targeted by the Trump Administration's cap on State and Local Tax (SALT) deduction, in sending a letter to President Joseph R. Biden calling for the elimination of the cap, which limits residential tax deductions to $10,000.
New York Gov. Andrew Cuomo, Connecticut Gov. Ned Lamont, Illinois Gov. J.B. Pritzker, California Gov. Gavin Newsom, Oregon Gov. Kate Brown, and Hawaii Gov. David Ige signed onto the letter calling on the Biden Administration to remove the cap and its associated burden and negative impacts on middle-class families in their states.
The SALT cap imposed on blue states by the previous administration was not based on policy, but rather revenge politics, Murphy said. Before this cap, New Jersey already paid far more to the federal government in taxes than it received. Now the disparity is even greater as middle-class families in New Jersey face a larger tax burden as they subsidize federal payments to other states. The Biden Administration must support Congressional efforts to eliminate this cap and bring fairness back to our tax system.
A copy of the letter can be found here.
