Washington, DC – Today, Representative Mikie Sherrill (NJ-11) and Representative Josh Gottheimer (NJ-05) led the introduction of the bipartisan H.J. Res. 72 to overturn harmful U.S. Treasury Department regulations aimed at restricting Americans from deducting charitable contributions from their federal taxes. This is in response to a June 13th U.S. Treasury decision that barred municipalities from creating solutions to help residents affected by the 2017 state and local tax (SALT) deduction cap. Forty-Seven Members of the U.S. House of Representatives joined as original co-sponsors, and Members of the U.S. Senate introduced a companion resolution this afternoon.
“The state and local tax deduction cap has placed a significant burden on residents in my community,” said Representative Sherrill (NJ-11). “I hear it from parents who wonder how they are going to afford to send their kids to college and teachers who ask me how they can continue to make New Jersey their home. The U.S. Treasury Department’s wrongheaded decision to bar states from utilizing charitable deductions impacts Americans across the country. It was done without congressional input and our resolution will give power back to states like New Jersey to address the high cost of living — only made worse by the loss of the full SALT deduction in 2017.”
"I have continued to hear from cities and towns across the Fifth District that the Treasury Department's regulatory overreach is stopping them from being able to provide actual tax relief for our hardworking Jersey families. With today's bipartisan resolution, I'm digging in and fighting back with Rep. Sherrill, and with our colleagues in the Senate like Sen. Schumer, Sen. Menendez, Sen. Booker, and so many others," said Congressman Josh Gottheimer (NJ-05). "Simply put, Congress didn't give the IRS permission to interpret the tax law as they see fit. Today's resolution builds upon all of my efforts to, once and for all, give people the tax cuts they need and deserve."
The following Representatives are original co-sponsors on Representative Sherrill’s resolution in addition to Representative Gottheimer: Donald Norcross (NJ-01); Jefferson Van Drew (NJ-02); Andy Kim (NJ-03); Frank Pallone (NJ-06); Tom Malinowski (NJ-07); Albio Sires (NJ-08); Bill Pascrell, Jr. (NJ-09); Donald Payne, Jr. (NJ-10); Bonnie Watson Coleman (NJ-12); Peter King (NY-02); Tom Suozzi (NY-03); Max Rose (NY-11); Nita Lowey (NY-17); Sean Patrick Maloney (NY-18); Brian Higgins (NY-26); Bobby L. Rush (IL-01); Robin Kelly (IL-02); Sean Casten (IL-06); Danny K. Davis (IL-07); Lauren Underwood (IL-14); Anna Eshoo (CA-18); Jimmy Panetta (CA-20); Katie Hill (CA-25); Judy Chu (CA-27); Grace F. Napolitano (CA-32); Ted Lieu (CA-33); Gil Cisneros (CA-39); Maxine Waters (CA-43); Katie Porter (CA-45); Harley Rouda (CA-48); Mike Levin (CA-49); Brendan Boyle (PA-02); Chrissy Houlahan (PA-06); Susan Wild (PA-07); Mike Doyle (PA-18); John Larson (CT-01); Joe Courtney (CT-02); Rosa L. DeLauro (CT-03); Jim Himes (CT-04); Jahana Hayes (CT-05); Earl Blumenauer (OR-03); Suzan DelBene (WA-01); Eleanor Holmes Norton (DC); Dutch Ruppersberger (MD-02); David Trone (MD-06); Lori Trahan (MA-03); Dean Phillips (MN-03).
The Congressional Review Act of 1996 (CRA) establishes procedures by which the House and Senate may strike down regulations issued by federal agencies and must be submitted within 60 days of Congress receiving the rule. If the disapproval resolution is passed by both chambers, the rule cannot take effect and the agency is barred from issuing a substantially similar rule without subsequent statutory authorization.
The 2017 Tax Cuts and Jobs Act imposed a $10,000 cap on federal income tax deductions for state and local taxes. The state and local tax deduction cap impacts 11 million Americans who were unable to deduct more than $323 billion in state and local taxes.