Newly appointed U.S. Senator George Helmy introduced a measure that seeks to raise the state and local tax (SALT) deduction cap from $10,000 to a staggering $100,000.
Helmy, named by millionaire Governor Phil Murphy to fill the shoes of the disgraced former Senator Bob Menendez, touts his Tax Relief for Middle-Class Families Act of 2024, as a lifeline for New Jersey’s homeowners, but critics argue that this proposal is less about helping ordinary citizens and more about catering to the wealthy.
Lisa McCormick, who challenged Menendez in the 2018 Democratic primary, has been vocal about her opposition.
McCormick points out that “ordinary middle-class Americans do not need a $100,000 tax deduction.”
Average property taxes in New Jersey hover around $9,000, making the current $10,000 SALT cap more than sufficient for most homeowners.
McCormick says that under Helmy’s plan, a staggering 96% of the benefits would go to the top 20% of earners, with the richest 0.1% receiving an average tax cut of $154,000 per year.
In contrast, the middle 60% would see an average tax cut of just $37.
“Wealth distribution in the United States is highly concentrated, with the bottom 50% of Americans sharing only 2% of the total household wealth,” said McCormick. “Good times have not trickled down as promises, and deregulation has encouraged lawlessness among the super-wealthy oligarchs and corporate aristocracy. This is a situation we created but it is not one that we are condemned to endure.”
“The SALT deduction is a tax break for the rich,” said McCormick. “Most Americans do not itemize their tax returns. Most New Jersey residents pay less than $10,000 in property taxes.”
“George Helmy put himself alongside Donald Trump, who is proposing to reverse this key element of his signature 2017 tax law,” said McCormick. “Most homeowners are fine with the $10,000 SALT cap because, with a $27,000 standard deduction, few people itemize their taxes instead of using a short form.”
“The middle 60 percent of the income distribution would receive an average tax cut of only $37 per year,” said McCormick. “Real Democrats know there are dozens of better ways for the federal government to spend $85 billion, and a $15,000 or $20,000 SALT cap would be more than adequate to protect ordinary people.”
This raises serious questions about Helmy’s true intentions. Is he genuinely committed to the middle class, or is he simply a puppet for big-money donors?
McCormick argues that “real Democrats” would prioritize meaningful, equitable social policies over tax breaks for the rich.
She suggested that the $85 billion earmarked for this legislation could be better spent on universal pre-K, affordable childcare, or an expanded Earned Income Tax Credit, all of which would directly benefit working families.
Helmy claims the bill will provide “meaningful financial relief” to struggling essential workers like teachers, nurses, and firefighters.
But with such disproportionate benefits for the wealthy, McCormick openly wonders, whose interests is he really serving?
The working-class families he claims to support are burdened by the high cost of living, but this bill does little to address their needs. A higher minimum wage or a greater tax exemption are just two ways to put more money in the pockets of working-class people.
McCormick argues that the proposal is troubling, and she said, “Helmy is lying” if he thinks this legislation aligns with the interests of the average New Jerseyan.
The bill was originally introduced in the House by Representatives Mikie Sherrill and Mike Lawler, both of whom overstate the detrimental effects of Trump’s 2017 tax legislation for middle-class families.
Helmy’s tax relief bill could be an opportunity for establishment Democrats to demonstrate their commitment to funding another giveaway for the rich.
“While some argue that an increased SALT cap is necessary, why not propose a more moderate cap that still provides relief but doesn’t exacerbate wealth inequality?,” said McCormick. “A phased approach could allow for meaningful adjustments while preventing the upper crust from reaping the lion’s share of the benefits.”
“In an era where economic inequality continues to widen, politicians should prioritize policies that genuinely support the middle class rather than further enriching the already affluent,” said McCormick. “If Senator Helmy truly wants to be a man of the people, he must reconsider his stance and focus on legislative solutions that uplift all New Jersey families, not just the privileged few.”
“When I look at the Democratic Party today, I don’t even recognize it,” said McCormick. “Our party was founded on principles that championed the interests of the people—equality, justice, and representation for all. However, George Helmy is evidence that the Democratic Party has been transformed by a hostile Wall Street takeover, where corporate influence has corrupted the party of the people.”