New Jersey Democrat Calls Kentucky, Other Red States ‘Moochers’

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Michael Ginsberg General Assignment Reporter
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Democratic New Jersey Rep. Josh Gottheimer slammed Kentucky and other Republican-leaning states as “moochers” in response to comments by Republican Kentucky Sen. Mitch McConnell.

My red line is not having New Jersey continue to foot the bill for a Moocher State like Kentucky. The 2017 Tax Hike Bill hit Blue States like NJ with the SALT cap to pay for tax cuts for THEIR families, and it hit our families hard,” Gottheimer tweeted.

McConnell had said that Republicans would not reconsider raising the SALT cap.

The SALT — or State And Local Tax — cap is a provision in the tax code that allows citizens who pay more state income taxes to pay less in federal income taxes. Many economists and lawmakers have criticized the SALT provision, arguing that it is a wealth transfer from Republican to Democratic states.

New Jersey has a top income tax rate of 10.75%, while Kentucky has a flat income tax rate of 5%.

The 2017 Tax Cuts and Jobs Act lowered the SALT cap to $10,000, meaning that taxpayers may deduct that much money from the federal taxes. There was previously no limit to that deduction. Democrats like Gottheimer want their constituents to be able to deduct more, while many Republicans want to eliminate the deduction entirely. (RELATED: REPORT: Pelosi Considering Coronavirus Stimulus Package That Would Offer Tax Rebates For Wealthy)

A bipartisan group of lawmakers is calling for President Joe Biden’s infrastructure bill to return the unlimited SALT deduction. They are threatening to vote against any new legislation that does not eliminate the cap, CNBC reported.