Rep. Josh Gottheimer on Wednesday introduced a resolution with Republican New York Rep. Peter King seeking to overturn a decision by the Internal Revenue Service that blocked a workaround to the $10,000 cap on state and local tax deductions passed by New Jersey lawmakers.
“Simply put, Congress didn’t give the IRS permission to interpret the tax law as they see fit. It’s incredibly clear that this rule is aimed at whacking blue states like New Jersey and all of our hardworking, taxpaying families,” Gottheimer said. “The Treasury rule doesn’t curtail similar tax benefits to other states – making this the ultimate politically-motivated giveaway to Red States. With the resolution I’ve introduced today, I’m digging in and fighting back.”
The SALT cap hits blue states like New Jersey, where property taxes are among the highest in the nation, particularly hard.
During last year’s elections, many candidates ran on their opposition to the cap.
“I have heard from cities and towns across the Fifth District that this Treasury regulatory overreach is stopping them from being able to provide actual tax relief for their residents,” Gottheimer said. “Our resolution aims to provide much needed certainty and, once and for all, give people the tax cuts they need and deserve. Our families and our businesses simply can’t afford tax increases at any level.”