TRENTON, N.J. (CBSNewYork) — The New Jersey state senate will vote Monday on an inventive plan to combat the federal government’s new cap on state and local taxes.
As WCBS 880’s Mike Smeltz reported, the bill being considered by New Jersey lawmakers would allow tax filers to convert their property tax payments into charitable deductions, which would operate as a workaround of the new cap on state and local deductions that were part of the Republicans’ new federal tax system.
Treasury Secretary Steve Mnuchin has called the plan “ridiculous.”
But U.S. Rep. Josh Gottheimer (D-New Jersey) said the Trump administration is caught in a bind.
“I wrote Secretary Mnuchin a letter right after he made his comments, saying, ‘OK, but can you explain why you disagree with this?’” Gottheimer said.
When asked if Mnuchin had written him back, Gottheimer said: “No. Crickets. I think they’re not writing back because they know they’re stuck. Thirty-three other states are doing this.”
Gottheimer said if President Donald Trump stops New Jersey’s plan, the similar programs would have to end in those 33 mostly Republican-leaning states.