New Jersey's 26th Legislative District

Senator Joe Pennacchio

Senator Joe Pennacchio

Pennacchio: Murphy’s Frivolous SALT Lawsuit Is a Waste of Taxpayer Dollars

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Senator Joe Pennacchio criticized Governor Murphy’s lawsuit against the Internal Revenue Service, claiming it is a waste of state resources and taxpayer money.

Sen.Joe Pennacchio criticized Gov. Murphy’s lawsuit against the IRS, claiming it is a waste of state resources and taxpayer money. (Flickr)

“The Murphy Administration is lawsuit happy,” said Pennacchio (R-26). “The Governor should not be using New Jersey taxpayer dollars to play politics. Rather than fighting with the federal government, I urge Governor Murphy to focus on genuine and immediate tax solutions that we have the power as state lawmakers to advance.”

Yesterday, Governor Murphy announced his federal lawsuit against the Internal Revenue Service.

After the $10,000 limit on the federal income tax deduction for state and local taxes (SALT) was imposed nationwide, Governor Murphy attempted to create a charitable deduction scheme aimed to allow New Jersey taxpayers to skirt the new limit. The IRS denied New Jersey’s attempts to circumvent the federal cap.

While Senator Pennacchio was an outspoken critic of the elimination of the salt cap, he believes that implementing fiscal reforms on the state level is the best way to provide real property tax relief.

“This lawsuit is a distraction from the issue at hand – New Jersey taxes are through the roof,” added Pennacchio. “The IRS made it clear that they will not allow this concerted effort to evade federal taxes to continue. Rather than waste taxpayer time and money to grab headlines, the Governor should work with the state legislature to focus on alleviating New Jersey’s unreasonably high tax burden.”

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