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State and local tax deduction cap back in play for coronavirus relief package

New Jersey’s House delegation upped the ante for a pandemic relief package Wednesday, calling on congressional leaders to include a repeal of a cap on state and local tax deductions.
 
The bipartisan push for relief from the so-called SALT deduction cap could add a new wrinkle to negotiations over President Joe Biden’s $1.9 trillion coronavirus relief plan. It also threatens to push the price tag north of $2 trillion, depending on how long the tax break would last.
 
“Removing the SALT cap would be a textbook method to provide relief to communities ravaged by the pandemic,” New Jersey’s 10-member bipartisan delegation wrote Wednesday to Speaker Nancy Pelosi and Senate Majority Leader Charles E. Schumer and to Treasury Secretary Janet Yellen.
 
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