The editorial board of the Press of Atlantic City takes New Jersey government to task over the real reason behind their opposition to the federal cap on state and local (SALT) tax deductions:
“This sort of progressive taxation is much like the millionaire’s tax sought by Murphy and some fellow Democrats. The fact that they’re against it when the revenue goes to another branch of government shows their concern for revenue outweighs that for working and middle-class families.
And that’s the key to why high-taxing states are trying to void the deduction cap. Wealthy people who can no longer write off a significant percentage of their state and local taxes are much less likely to support tax increases and more likely to start demanding that spending be cut in order to balance state budgets.
Working and middle-class families have born the full brunt of repeated increases in New Jersey taxes. They should be glad to have affluent families join them and start demanding that state officials reform state spending to make the burden tolerable for residents and the economy.”