Schumer, Senate Democrats will force vote to repeal IRS ruling on SALT cap workaround

Lawsuit over SALT deduction all theatrics, no substance?

Former New York Lt. Gov. Betsy McCaughey on Sen. Kamala Harris’, D-Calif., Medicare-for-all plan and the three states suing IRS over the SALT deduction cap in the Republican tax reform legislation.

Senate Democrats plan to force a vote to repeal a recent ruling regarding the controversial $10,000 cap on state and local tax (SALT) deductions, imposed under the Tax Cuts and Jobs Act.

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Senate Minority Leader Chuck Schumer, D-N.Y., and Sen. Ben Cardin, D-Md., announced on Thursday that they would use a disapproval resolution under the Congressional Review Act to “force a majority-threshold vote” on a measure to repeal IRS rules that block a SALT cap workaround.


Specifically, the vote will be on “a resolution to repeal the IRS rule that prohibits states and local governments from protecting residents from ‘double taxation’ of their local charitable contributions and State and Local Taxes (SALT) under the Trump tax bill,” Schumer said in a press release.

In response to the cap, a number of state governments proposed or enacted legislation that would allow taxpayers to make charitable contributions to an established state fund in order to earn a credit. The goal would be to allow the residents to take the full amount given as a deduction by transforming a non-deductible payment into a charitable contribution.

The IRS and the Treasury Department officially squashed that workaround in June.

Additionally, Senate Democrats plan to force votes to repeal the EPA’s “Affordable Clean Energy” Rule next week and a resolution to save protections for pre-existing conditions.

A disapproval resolution must be submitted within 60 days after Congress receives a rule. Thirty senators are required to submit a petition for the purpose in order for it to proceed. The resolution would require a majority to pass – although Democrats do not hold a majority in the chamber.


New York and Maryland are two of four states that filed a lawsuit to have the SALT cap declared unconstitutional. Their lawsuit, however, was recently dismissed by a judge. Schumer’s office, as well as the New York Attorney General, have indicated that they may appeal the decision.

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