Schumer, Wyden, Menendez, Senate Democrats Unveil New Legislation To Restore Homeowners’ Ability To Work Around GOP Tax Law’s Cap Of SALT Deduction, Which Is Costing Homeowners Tens-Of-Thousands Of Dollars
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Schumer, Wyden, Menendez, Senate Democrats Unveil New Legislation To Restore Homeowners’ Ability To Work Around GOP Tax Law’s Cap Of SALT Deduction, Which Is Costing Homeowners Tens-Of-Thousands Of Dollars

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WASHINGTON, DC – (RealEstateRama) – After IRS Blocked Homeowners’ Ability To Work Around Harmful GOP Tax Law Caps On SALT Deduction, Senate Dems Introduce Congressional Review Act (CRA) Resolution Of Disapproval To Nullify The IRS’s Rule

New Senate Dem Legislation Would Restore States’ Ability To Work Around The Harmful Caps And Allow Homeowners To Again Fully Retain Their SALT Deduction

Senate Democrats: The GOP Tax Bill And These Unfair IRS Regulations Hurt America’s Homeowners—We’re Fighting Back

Washington, D.C. – Following the introduction of new IRS rules that would block critical state workarounds to harmful state and local tax (SALT) deduction caps, Senate Democratic Leader Chuck Schumer (D-NY), Senate Committee on Finance Ranking Member Ron Wyden (D-OR), Senator Bob Menendez (D-NJ), Senator Patty Murray (D-WA), Senator Dick Durbin (D-IL), Senator Jeff Merkley (D-OR), Senator Kirsten Gillibrand (D-NY), Senator Richard Blumenthal (D-CT), Senator Chris Murphy (D-CT), Senator Cory Booker (D-NJ), and Senator Chris Van Hollen (D-MD) today introduced a Congressional Review Act (CRA) Resolution of Disapproval to nullify the recent IRS decision, restore states’ ability to work around the harmful caps, and allow homeowners to again fully retain their SALT deduction. While the Treasury Department blocked states’ workarounds for families, the department in September 2018 issued guidance that allowed businesses to continue to benefit from these same workarounds.

“As if the Trump-Republican Tax Bill wasn’t already bad enough for middle class families, these new IRS regulations are another kick in the gut to homeowners in New York State and across the country,” said Senate Democratic Leader Chuck Schumer (D-NY).“The IRS is seeking to deny hardworking homeowners the benefit of the full SALT deduction while continuing their tax giveaway to the wealthiest few and corporations. Today, we are fighting back with a CRA Resolution of Disapproval, which is guaranteed a majority threshold up-or-down vote, would overturn the IRS’s recent attempt to block states from implementing workaround plans, and would allow homeowners to again fully receive this tax benefit. America’s homeowners deserve peace of mind.”

“Republicans intentionally created financial pain for middle-class families in Democratic states so they could shovel tens of billions of dollars more in tax cuts to the most well-off companies in America,” said Senate Committee on Finance Ranking Member Ron Wyden (D-OR). “Democratic states responded to being targeted by Donald Trump and congressional Republicans, but the Treasury Department has now overstepped its bounds and blocked efforts to shield families from tax increases when just last year it gave businesses a free pass on these limitations. Our Resolution of Disapproval on these regulations is about fairness—families should get the same deal as Trump’s donors and cronies.”

“Trump’s tax law was a massive hit job on middle class taxpayers in New Jersey and other economic powerhouse states where the cost of living is high, and we are going to keep fighting with every tool we’ve got,” said Senator Bob Menendez (D-NJ). “This CRA will reverse the flawed guidance issued by the IRS last month, which crippled state level efforts to protect middle class families from even higher property tax burdens. Our action today is our latest effort to stop this president from weaponizing the tax code against blue states like New Jersey, and I will keep fighting for other legislative solutions, like my own legislation the SALT Act, to fully reinstate the property tax deduction so vital to supporting education, public safety, and other job-creating investments in our communities.”

“Gutting state and local tax deductions hit Illinois hard,” said Senator Dick Durbin (D-IL). “I’m proud to join my colleagues in this effort to provide hard working families across the country the relief they desperately need.”

“New Yorkers are already suffering the consequences of the Republican tax cuts and President Trump’s irresponsible budget, and these new IRS regulations will hurt hardworking homeowners  even more,” said Senator Kirsten Gillibrand (D-NY). “This is a blatant attack on New Yorkers. I’m proud to introduce this CRA Resolution of Disapproval which would restore our state’s  ability to work around the Trump administration’s harmful rules and help ensure New York homeowners who have played by the rules are not punished by Republican efforts to eliminate the SALT deduction.”

“This significant measure would empower states to provide needed relief to middle-class families who have been devastated by the Republican tax scam,” said Senator Richard Blumenthal (D-CT). “The CRA would nullify new IRS rules that rub salt in the wound for thousands of Connecticut residents.

“The Republicans’ tax bill has been an all-around failure for working and middle-class Americans. Capping the state and local tax deduction was a clear partisan gimmick designed to hurt states like Connecticut,” said Senator Chris Murphy (D-CT). “Our state stepped up and approved a plan to help Connecticut taxpayers, but the IRS’s harmful new rule would block that. This CRA reverses this rule and allows our state to help homeowners from bearing the brunt of Republican antics.”  

“The Republican Tax Bill came as a punch in the gut for millions of American families while lining the pockets of big corporations and the very wealthy. One of the biggest blows to working families came from eliminating the state and local tax deduction,” said Senator Chris Van Hollen (D-MD). “Maryland taxpayers now have to pay Uncle Sam again on the same dollar they’ve already used to pay to their state and local governments for our infrastructure and schools. This legislation would allow states to provide relief, and I urge my colleagues to take it up immediately.”

Under the pre-Trump tax code, taxpayers who itemized deductions on their federal income tax returns could deduct state and local real estate and personal property taxes, as well as either income taxes or general sales taxes. State and local income and real estate taxes had made up approximately sixty percent of local and state tax deductions while sales tax and personal property taxes made up the remainder. According to the Tax Policy Center, approximately one-third of tax filers had itemized deductions on their federal income tax returns.

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