22 states, many ‘moochers,’ already have a charity tax credit, N.J. Democrat says

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Nearly half of all states already employ a controversial approach to helping residents game newly signed tax legislation, making recent suggestions that it wouldn’t fly with the Internal Revenue Service moot, a New Jersey Democrat said Monday.

Representative Josh Gottheimer told MSNBC that 22 states—“mostly red states”—allow residents to receive property tax credits for their payments to charitable funds. That approach has been suggested as a way of alleviating the burden on high-tax state residents under the new tax plan, which caps the amount of state and local taxes that may be deducted from a federal tax return at $10,000.

Read: Clobbered by new tax code, blue states—and pundits—plot their revenge

Some experts, including the Tax Foundation, have said publicly that such a plan wouldn’t fly, because to be considered a charitable contribution, a payment cannot have any quid pro quo attached to it.

On MSNBC, Gottheimer referred to red states like Alabama and Mississippi, which receive more from the federal government than its citizens pay in, as “moocher states.” That is a familiar refrain among Democratic state officials since the passage of the tax overhaul, which many believe unfairly targets states that contribute more than they receive.

Read: The Trump tax calculator—will you pay more or less?



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