Hat tip to Joyce for this gem, from the Star Ledger:
A $3.5 trillion spending bill for health care, child care, education and climate change also will address the $10,000 cap on deducting state and local income and property taxes, a key senator said Wednesday.
U.S. Sen. Robert Menendez, a member of the tax-writing Senate Finance Committee that will help draft the spending bill, said the measure will deal with the deduction, known as SALT.
“My understanding is there is a SALT provision in there that would provide relief,” Menendez told NJ Advance Media.
It’s unlikely that the deduction would be fully restored immediately because that would cost $673 billion over ten years, according to the Tax Foundation, a conservative research group.
But raising the deduction cap by thousands of dollars would benefit middle class homeowners who were hit hard by the provision, including those in New Jersey, which has the nation’s highest property taxes.
Menendez said the details have yet to be worked out.