How much will you get in latest stimulus under Biden? – New Jersey 101.5 FM
As Congress continues to work on a massive new stimulus bill, there are a few add-ons that could benefits a good number of New Jersey residents.
The fight over the weekend surrounded at what income level to cut off receipt of stimulus cash. A full payment of $1,400 appears set to go to anyone making $75,000 a year or less. Some Republican members of the Senate attempted to make the cutoff $50,000. Sen. Bernie Sanders, who chairs the Senate Budget Committee rejected that idea. In a high-income state like New Jersey, a cutoff at 50k would leave thousands of middle-class families without the relief intended in the bill.
Lawmakers are also attempting to include a repeal of the SALT cap. The Trump-era tax policy capped the amount of state and local tax you could deduct on your federal income tax return at $10,000. It was a valuable deduction in high tax states like New Jersey, where U.S. Sen. Bob Menendez is among those lobbying for the removal of the cap, calling it middle-class tax relief. Gov. Phil Murphy and New York Gov. Andrew Cuomo joined together Friday to urge Congress to get rid of the SALT cap.
There is also a chance lawmakers take the complete opposite tack, and get rid of the deduction entirely. Republican Sen. Mitt Romney has proposed eliminating the deduction for all state and local taxes, and use the money to pay direct cash benefits to parents with young children. Romney wants to send up to $350 per month to families with young children, starting before the child is even born. It’s not clear how much support the proposal has, but it is the biggest threat to emerge to democratic plans to eliminate the SALT cap.
In New Jersey, the payments for children may not offset savings from deducting more property tax. It would also leave out tens of thousands of older New Jerseyans who no longer have kids at home but still pay high property taxes.
There is also negotiation over possibly raising the Child Tax Credit from a maximum $2,000 up to $3,600. House Democrats plan to add that to their version of the $1.9 trillion dollar relief bill.
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