Home>Articles>Gottheimer blasts senate Republicans for blocking SALT cap rule repeal

Rep. Josh Gottheimer (D-Wyckoff). (Photo: Kevin Sanders for New Jersey Globe)

Gottheimer blasts senate Republicans for blocking SALT cap rule repeal

IRS regulation blocked charitable giving workaround

By Nikita Biryukov, October 23 2019 5:42 pm

Rep. Josh Gottheimer blasted Senate Republicans for stopping the repeal of an IRS rule that blocked a workaround to the $10,000 cap imposed on state and local tax deductions.

“Once again, the Moocher States stuck it to New Jersey,” Gottheimer said. “It’s outrageous that Red State Senators, once again, voted down a tax cut for New Jersey.”

Democratic senators forced a vote on the IRS rule using the Congressional Review Act.

Under the law, lawmakers can force a vote on resolutions signed by 30 senators.

The vote failed 43-52. It largely followed party lines, with only one Republican and one Democrat voting against their party.

Sens. Bernie Sanders (I-Vt.), Elizabeth Warren (D-Mass.) and Kamala Harris (D-Calif), all of whom are seeking the Democratic nod to challenge President Donald Trump, were among the five who did not vote on the measure.

Earlier this year, the IRS issued a regulation that blocked workarounds to the SALT cap. Such workarounds involved allowing residents to pay their state and local taxes through charitable contributions.

The SALT cap hits blue states like New Jersey, which are typically more affluent and contribute a larger share of federal taxes than they receive, particularly hard.

Red states typically receive more in federal tax money than they pay.

“We need to fully reinstate the State and Local Tax Deduction and finally get a real tax cut for New Jersey,” Gottheimer said. “I will keep fighting Treasury for simply rubber stamping tax giveaways to Moocher States, while we carry the bill.”

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