WASHINGTON D.C. – U.S. Congressman Josh Gottheimer asked U.S. Treasury Secretary Janet Yellen to help save North Jersey families on their taxes by reinstating the ability for taxpayers to make charitable donations to their towns to receive a tax credit on their local tax bills.
In light of the harmful cap on the State and Local Tax (SALT) deduction from the 2017 Tax Hike Bill, Gottheimer has been a proponent of restoring the value of the SALT deduction by providing a tax deduction for taxpayers who make charitable contributions to their state or other local governments.
Then, in June 2019, under the previous Administration, the Treasury Department and the IRS finalized a rule in a massive regulatory overreach — without any legislative basis and against both legal precedent and decades of previous IRS approval — that placed a limit on these charitable deductions, fully outside of the scope of Congressional intent when it comes to the tax treatment of these donations.
“It is imperative that we work together to get our tax policy right and cut taxes for hard-working Americans as we continue to fight this pandemic. Given the level of need in this country, we should be trying to encourage charitable giving as much as possible to help those that need additional help,” Congressman Gottheimer said in a letter this week to U.S. Treasury Secretary Yellen. “
Last Congress, Gottheimer introduced a bipartisan Joint Resolution in the House of Representatives to fully repeal the Treasury Department’s massive regulatory overreach that prohibits states like New Jersey and New York from allowing towns and municipalities to use charitable funds to offer real tax relief to their communities.