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House Democrats on Monday announced a series of tax changes to fund their $3.5 trillion spending bill, but failed to increase the federal deduction for state and local taxes. While the House Ways and Means Committee proposal is not the final word on the legislation, the absence of a provision increasing the $10,000 deduction cap could make it harder to get the provision into the final bill. "What we consider now is an important step in the process, but not the final step," said Rep. Bill Pascrell, D-9th Dist., the only New Jersey member of the tax-writing committee. "We are committed to enacting a law that will include meaningful SALT relief that is so essential to our middle class communities and we are working daily toward that goal." The provision still could be added when the committee or the full House debates the legislation, or could be one of the changes the Senate makes to the bill when it reaches that chamber. "I am extremely disappointed the Ways and Means Committee missed the opportunity to correct the ill-conceived, partisan cap on the SALT deduction," said U.S. Sen. Robert Menendez, who sits on the tax-writing Senate Finance Committee that will address the deduction in that house. "This decision could impact thousands of hardworking, middle-class New Jersey families who — since the repeal came into effect — are being in essence double-taxed." Just as U.S. Sen. Joe Manchin of West Virginia, whose vote is crucial to the bill's chances of passing the Senate, said he would not support a spending bill as large as the one being proposed, the absence of what is known as the SALT provision threatens the measure even before it passes the House. Several lawmakers from New Jersey and other high-tax states have threatened to vote no if the the provision in the Republican tax law is not changed. The deduction cap disproportionately affects those states, most of which send billions of dollars more to Washington than they receive in services. Asked if Rep. Mikie Sherrill, D-11th Dist., would support a bill that did not address the deduction cap, spokesman Bryan Doherty said, "No, and House leadership knows that." Another of those lawmakers, Rep. Josh Gottheimer, D-5th Dist., reiterated his demand that a cap fix be included. Gottheimer delayed passage of a budget resolution allowing $3.5 trillion bill to be considered without the threat of a Senate Republican filibuster until he got a timetable for a vote on a separate $1 trillion bipartisan infrastructure measure. "Reinstating the SALT deduction — and making life more affordable for Jersey families — remains my top priority," he said. "This is just the beginning of a long process. There will be lots of twists and turns. I'm confident SALT will be in the final bill, or, as I have said since day one: No SALT, No Dice." Ways and Means chair Richard Neal, D-Mass., later issued a joint statement with Pascrell and Rep. Tom Suozzi, D-N.Y., pledging to work with House Speaker Nancy Pelosi, D-Calif., who already has endorsed an expanded deduction, to get the provision in the final legislation. And Menendez said that if the deduction fix is not in the final legislation, "it will be hard to support a bill that does nothing to provide this much needed tax relief." "The full deduction of state-and-local taxes is commonsense tax policy that incentivizes states to invest in education, public safety, essential services and other job-creating initiatives that create economic opportunity for all," Menendez said. "This is not about blue states versus red states, this is about taxpayers who are not being treated fairly." Two-thirds of those taking the deduction in New Jersey, the state with the nation's highest property taxes, had income between $75,000 and $200,000, according to Internal Revenue Service statistics. Moody's Analytics found home values across the state were below what they would have been without the limit on state and local tax deductions. And a Joint Committee on Taxation analysis found 66% of those using the tax break in 2019 made less than $200,000, even as a full repeal would give 61% of the benefits to those earning more than $200,000. Our journalism needs your support. Please subscribe today to NJ.com. Jonathan D. Salant may be reached at jsalant@njadvancemedia.com. Follow him at @JDSalant. Start your day with the latest from Trenton, D.C. and your town. Get the N.J. Politics newsletter now. If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.