Feds Pump Brakes on SALT Workarounds Pursued by Blue States
Washington, D.C. (August 24, 2018)— Instead of whining about the Treasury’s decision to block their tax deduction shell game, Governor’s Andrew Cuomo and Phil Murphy should get to work cutting state taxes and lowering state spending, says Job Creators Network (JCN). High taxed states like New York and New Jersey have been attempting to evade a provision in the Tax Cuts and Jobs Act that caps state tax deductions for federal returns to $10,000 per year—commonly referred to as SALT deductions.
A common tactic being used to work around the measure is to allow taxpayers to deduct their state and local taxes as charitable donations.
“I think it’s clear to everyone that state tax payments are not charitable donations and should therefore not be treated as such,” said Alfredo Ortiz, JCN President and CEO. “Instead of engaging in desperate attempts to maintain their high-tax and spend-more policies, state lawmakers should turn inward and take responsibility for their own fiscal decisions.”
“The federal government should not be responsible for the high tax rates in blue states, that’s the state’s problem. Our elected representatives in Washington already did their part to lower the federal tax burden last year. It’s time for state lawmakers to do the same.”