I support reforming our tax system in a way that will create jobs, strengthen the middle class, encourage entrepreneurs, and help small businesses grow and hire. Tax relief should go to those who need it, not the extremely wealthy. That is why I was a strong opponent of the Republican tax bill that was rushed through the 115th Congress in order to create tax breaks for corporations and the wealthy.
Republican Tax Plan
On December 22, 2017, President Trump signed the GOP tax plan into law, restructuring our current tax code in a way that prioritizes tax cuts for the wealthy and corporations over the needs of American families. Tax breaks for corporations that will benefit foreign shareholders are permanent, while 86 million middle class American families will see their taxes increase once temporary tax breaks expire. The state and local tax (SALT) deduction is limited, directly and negatively impacting millions of people in New Jersey where the average SALT deduction is worth well over the new limit of $10,000. While families have been hit with higher tax rates as a result of the limiting of SALT and property tax deductions, the wealthiest income bracket will be receiving a 2.5% tax break on their income tax.
I have been ardently opposed to this restructuring and believe that comprehensive tax reform must be a bipartisan effort that helps those most in need of tax relief rather than funneling benefits to the wealthy. The wealthiest in our nation, including those who hold public office, are the last people we should be prioritizing when there are millions who need tax relief in order to keep their heads above water.
In an attempt to ensure that our nation has a compassionate and fair tax system, I have cosponsored numerous pieces of legislation including:
- H.R. 5377, the Restoring Fairness for States and Localities Act. This legislation, which passed the House of Representatives, would eliminate the SALT deduction cap in 2020 and 2021 and double the $10,000 cap for people filing a joint tax return.
- H.R. 1142, the Stop Attacking Local Taxpayers (SALT) Act. Introduced by my fellow New Jerseyan, Rep. Bill Pascrell, this bill would repeal the $10,000 SALT deduction cap and increase the top income tax bracket to 39.6%.
- H.R. 5342, the Supporting America’s First Responders Act. This bill would allow an expense deduction, up to $500, for first responders.
More on Tax Reform
(Washington, D.C.) – Today, Congressman Sires released the following statement regarding the Republican tax plan:
“As I’ve said before, this Republican tax plan prioritizes the wealthy and corporations over working American families while adding $1.5 trillion to our national deficit over the next decade. Tax reform should be a bipartisan effort to simplify the tax code in a way that is fair and stimulating for the economy, not a one-sided plan crafted behind closed doors.