***VIDEO RELEASE*** Menendez Grills Treasury Secretary Mnuchin on Behalf of NJ Property Taxpayers

***VIDEO RELEASE*** Menendez Grills Treasury Secretary Mnuchin on Behalf of NJ Property Taxpayers

   

WASHINGTON, D.C. – During today’s Senate Banking Committee hearing, U.S. Senator Bob Menendez (D-N.J.) demanded Trump Treasury Secretary Steve Mnuchin reverse the IRS’s unjust directive and allow the thousands of New Jerseyans, who frantically prepaid their 2018 property taxes before the end of the year, to fully deduct them from their federal taxes.

Sen. Menendez, grilled Mnuchin, saying, “The IRS advisory clearly contradicts the law and is nothing more than a backdoor attempt to further penalize the people of New Jersey and other successful, donor states.”  

 

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The Trump tax law caps state and local tax (SALT) deductions at $10,000, which could result in double-taxing up to 1.8 million, or 40 percent of New Jersey taxpayers.  In an attempt to alleviate this painful impact on their pocketbooks, many New Jerseyans, who had claimed a combined $32 billion in annual SALT deductions, frantically prepaid their 2018 property taxes in the final days of December 2017 – many standing in lines for hours.

The December 27 announcement from the IRS effectively limits the ability of taxpayers to deduct property taxes paid in 2017, despite the new law not taking effect until the 2018 tax year, which the senator noted has created chaos and confusion surrounding the implementation of the rushed tax bill. 

Earlier this month, Sen. Menendez, a senior member of the Senate Finance Committee that sets national tax policy, led a New Jersey Congressional delegation letter demanding the Internal Revenue Service (IRS) rescind their directive that would prohibit New Jersey residents from deducting their prepaid 2018 property taxes from their 2017 federal taxes.  The letter was signed by U.S. Senator Cory Booker and Reps. Donald Norcross (N.J.-01), Josh Gottheimer (N.J.-05), Frank Pallone, Jr. (N.J.-06), Albio Sires (N.J.-08), Bill Pascrell, Jr. (N.J.-09), Donald Payne, Jr. (N.J.-10) and Bonnie Watson Coleman (N.J.-12).

Sen. Menendez introduced an amendment to preserve full SALT deductions in December during Senate debate on the Trump tax plan, but Republicans struck it down on a strictly party-line vote. 

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