Lisa McCormick critiques Senator Helmy's $100,000 tax deduction

Lisa McCormick, who challenged former Senator Bob Menendez in the 2018 Democratic primary, strongly opposed newly appointed U.S. Senator George Helmy's recent proposal to raise the state and local tax (SALT) deduction cap from $10,000 to $100,000.

Helmy, appointed by Governor Phil Murphy, positions his Tax Relief for Middle-Class Families Act of 2024 as a support mechanism for New Jersey homeowners, but McCormick and other critics argue that the proposal disproportionately benefits the wealthy.

McCormick asserts that “ordinary middle-class Americans do not need a $100,000 tax deduction.” She points out that average property taxes in New Jersey are around $9,000, which makes the current $10,000 cap sufficient for most homeowners.

According to her analysis, Helmy’s plan would result in 96% of the benefits going to the top 20% of earners, with the wealthiest 0.1% receiving an average tax cut of $154,000 annually. In contrast, the middle 60% of earners would see only a modest average tax cut of $37.

“This situation underscores the highly concentrated wealth distribution in the United States,” McCormick stated. “Good times have not trickled down as promised, and deregulation has encouraged lawlessness among the wealthy.”

She criticized the SALT deduction as a tax break primarily benefiting affluent individuals, noting that most New Jersey residents do not itemize their taxes.

McCormick also compared Helmy's stance to that of former President Donald Trump, stating, “George Helmy has aligned himself with Trump, who is also working to reverse crucial aspects of his 2017 tax law.” She maintains that most homeowners are satisfied with the existing SALT cap, especially considering the $27,000 standard deduction, which leads many to choose the simpler tax filing options.

Addressing the broader implications of Helmy's bill, McCormick questioned whether the senator is genuinely committed to the middle class or is merely serving the interests of wealthy donors. She argues that “real Democrats” should focus on policies that promote equity and support working families.

McCormick proposed alternative uses for the $85 billion associated with the SALT deduction increase, suggesting investments in universal pre-K, affordable childcare, and an expanded Earned Income Tax Credit as more effective means of providing support to struggling families.

In her view, Helmy’s proposal fails to address the pressing needs of working-class families burdened by the high cost of living. She advocates for solutions such as raising the minimum wage or offering greater tax exemptions.

“The bill could have been an opportunity for establishment Democrats to demonstrate their commitment to equitable policies,” McCormick noted. “Why not consider a more moderate SALT cap that still offers relief but doesn’t exacerbate wealth inequality?” She suggests a phased approach could provide meaningful adjustments while safeguarding against excessive benefits for the wealthy.

McCormick concluded her remarks by lamenting the current state of the Democratic Party, saying, “I don’t even recognize it anymore. Our party was founded on principles of equality and justice for all, but today, we see evidence of a Wall Street takeover that has shifted its focus away from the people.”

As the debate continues, McCormick's criticisms may resonate with constituents concerned about the implications of Helmy’s proposed tax changes and their potential impact on economic inequality in New Jersey.