Compromise-seeking Gottheimer Says Trump’s Current Tax Plan is a Six-Alarm Fire for CD5

As federal Republican lawmakers conference to settle differences between the senate and house versions of a controversial and nearly universally NJ opposed GOP tax bill, U.S. Rep. Josh Gottheimer (D-5) says he doesn’t see any movement by his colleagues on the other side of the aisle toward eradicating the key component of the legislation that forces him to aggressively oppose it: namely the elimination of local and state tax deductions.

Gottheimer noted that he has long favored a lowered corporate tax rate, and on that front at least, supports the Republican overhaul. But he vigorously opposes the tax deductions measure in the bill, which enables the feds to raise an offsetting trillion dollars, and unfairly impacts states not favorable to the Donald J. Trump cause, including New York, New Jersey, Maryland, California and Illinois.

Sitting with InsiderNJ in a local diner in his hometown of Wyckoff this weekend, the first term congressman who faces a battleground reelection terrain next year said he plans to unveil a plan this week to preserve the local and state tax deduction as part of the tax plan. But he’s watching moment to moment to see what’s happening with tonight’s conference bill. If the GOP does not rid the bill of the tax deduction clause, he said he is prepared to fully support legal action based on equal protection arguments, echoing Governor-elect Phil Murphy’s sentiment on the subject.

“This is all hands on deck right now to stop this tax hike,” Gottheimer said. “This is a six-alarm fire for people – seniors – on fixed incomes.” Because the bill taxes people at the pre-state and local taxes deduction rate, “This is double taxation.”

“I want to cut taxes, and I think our taxes in the state and federally are too high and are hurting our ability to recruit and keep people in jobs,” the congressman added. “We [NJ] always are in the back [in terms of what the state receives on the dollar in taxes]. We have too much unnecessary red tape and bureaucracy our prop taxes and fed taxes.”

The GOP tax bill – opposed by all members of the New Jersey delegation with the exception of U.S. Rep. Tom MacArthur (R-3) – gives a regional advantage to pro-Trump states like Mississippi and Alabama (Gottheimer calls them ‘moocher states0, while Wyckoff raises taxes or bond for firefighters.

“They did it to stick it to us,” the congressman said. “They are coming literally into our homes and robbing us for their gain.”

 

The New Jersey Chamber of Commerce last week joined Gottheimer in denouncing the bill.

Former Bogota Mayor Steve Lonegan – who’s running for the Democrat’s congressional seat – supports the bill; while a second Republican, Bergen attorney John McCann, has not issued a public statement and did not return a phone call by InsiderNJ.

“My objective is tax relief for New Jersey,” Gottheimer said.

 

 

 

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