The Star Ledger - We need true tax reform, restored tax (SALT) deductions

By Mikie Sherrill

Day by day, we are bombarded with the latest political intrigue in both Washington, D.C., and Trenton.

Democrats and Republicans are facing off in Congress, Democrats can't agree and Republicans are silent in Trenton. Meanwhile the families of New Jersey are responsible for opening up their pocketbooks and paying the bills of not just New Jersey, but the federal government. Our leaders are not working together to solve our greatest challenges.

In Washington, congressional leaders have targeted New Jersey families with their tax-hike plan by curbing our ability to deduct our state and local taxes (SALT). In the 11th Congressional District, where the average SALT deduction is north of $20,000, any claim that this bill was about tax relief for middle-class families here in New Jersey is a farce. Our families cannot afford a never-ending cycle of tax increases as the answer to every fiscal problem. And they especially cannot afford tax increases here in New Jersey when they are getting hit so hard from the federal tax bill.

At a time when Congress is reckless with our nation's checkbook, the Democratic Party in New Jersey and in Washington must be focused on how we can bring lasting tax relief to our communities and offer real solutions to these problems. Proposals like mitigating the loss of SALT by classifying these taxes as charitable deductions are a great start at the local level, but they do not go far enough and will not be enough. That's why I will work with Democrats and Republicans alike in Congress to address these issues at the federal level.

I have met too many people over the past year who worry about how they are going to afford their homes, pay for their children's college or purchase their prescription drugs. Claims of fiscal responsibility fall flat in our community when a federal tax plan explodes the deficit and passes the debt burden on to our children and forces our seniors to worry about the future of Social Security and Medicare. Our neighbors are tired of government that only reacts to manufactured fiscal cliffs or cares about the deficit when it is politically convenient.

It's the refusal to negotiate and the lack of serious planning that rightly infuriate Americans.

It's the partisan politicking from those like Assemblyman Jay Webber, R-Morris, who would rather side with a Congress that raises taxes rather than speak out against a tax hike that clearly harms New Jersey's families. It's time to send new leaders to Washington who will bring people together to solve our most pressing challenges, like fixing a tax code that hampers economic progress and technological innovation.

I believe Americans need comprehensive, smart tax reform that truly simplifies our tax code. In Congress, my first priority will be to restore the full SALT deduction to provide relief for New Jersey families. Congress should also look at repatriating offshore funds to make sure companies pay their fair share and don't have an incentive to send jobs and profits overseas: two priorities Congress' recent "reforms" failed to sufficiently address.

We must also demand more for our tax dollars we send to Washington. We get the lowest return in the country on every dollar we give the federal government -- only 74 cents. In Congress, I will work to make sure New Jersey residents see a fair return on their tax dollars.

Instead of playing politics with our livelihoods, leaders in Congress should be focused on doing good for New Jersey families, and that means restoring the SALT deduction and addressing our tax code's systemic problems. We must change this damaging dynamic, give our communities peace of mind, and provide the fuel that drives the economic engine that is the Garden State.

Source