WASHINGTON, D.C. –– U.S. Congressman Josh Gottheimer, the Co-Chair of the bipartisan SALT Caucus, Wednesday is helping lead a request to the House Appropriations Committee to restore the State and Local Tax (SALT) deduction and provide relief for hard-working, middle class families in New Jersey.
Gottheimer and a group of Members of Congress are fighting for a provision that would prohibit the IRS from putting restrictions on state governments that block states from delivering SALT relief, including the use of a charitable deduction.
After the 2017 Tax Hike Bill capped the SALT deduction, many states like New Jersey developed innovative policies to provide relief to taxpayers, including by expanding access to the federal charitable deduction and helping small business owners to continue deducting their full SALT at the entity level. However, the IRS in 2019 issued new regulatory guidance restricting states from implementing these initiatives.
“Congress didn’t give the IRS permission to interpret the tax law as they see fit, which they’ve done by dismantling the charitable tax deduction,” said Gottheimer, the Co-Chair of the bipartisan SALT Caucus.”We must do everything we can, including restoring the SALT deduction, to help cut taxes and make life more affordable for families and small businesses.”