Reps. Leonard Lance and Josh Gottheimer announced they’re putting forward a proposal to the House conference committee to save the state and local tax deduction in its entirety. | AP Photo Gottheimer and Lance make last-ditch effort to save SALT deduction

With many New Jersey taxpayers likely to be hit hard by the tax cut bill working its way through Congress, a bipartisan House duo from the Garden State is proposing a “fix.”

Republican Rep. Leonard Lance and Democratic Rep. Josh Gottheimer announced they’re putting forward a proposal to the House conference committee to save the state and local tax deduction, or SALT, in its entirety, which under the bill would be reduced to $10,000.


“This has been part of the federal code since 1913, the advent of the modern code, and I’m advised that it was even contained in the income tax statute that was passed to fund the Civil War when Abraham Lincoln was president,” Lance said during a press conference and call with reporters.

Lance and Gottheimer both represent well-heeled suburban districts where many homeowners pay well above $10,000 a year in property taxes alone.

New Jersey is typically among the states that pay the most in federal taxes compared with what they get back.

Gottheimer said that by “doing this on our backs,” the bill is benefiting “ these moocher states who already take much more than they put in.”

“We think it’s a win-win-win, and something that the conference committee should address to look out for New Jersey and the Northeast instead of leaving us on the road like roadkill,” Gottheimer said.

Lance and Gottheimer are members of the House Problem Solvers Caucus, which is made up of an even split of 48 moderate Republicans and Democrats.

All but one New Jersey congressman — Republican Tom MacArthur — voted against the tax bill.

Gottheimer and Lance said their plan would also save mortgage interest and student loan deductions. They’d pay for it in part by doubling the bill’s estate tax exemption, but also by including a “step-up provision” that taxes assets at their market value at the time of sale instead of when they were obtained. They also said they’d close a private foundation loophole.

“And if you go through this plan and you go through this tax proposal line by line, you can see there are other special interest provisions that can be addressed,” Lance said.

The two congressmen said they believe they are the first two members of the House to make a proposal to the conference committee. But they acknowledged there’s no way to guarantee it will gain traction.

Gottheimer said he’s heard rumblings of discontent from some Republicans.

“There are some issues developing there that they’re going to have to address. The point is, are you going to have an idea of what’s there or not?” he said.