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New Jersey's Incoming Governor Joins Tax Fight as Cohn Hints at Pushback

  • Plan would recast state property taxes as charitable gifts
  • Trump’s economic adviser signals federal revenue concerns
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U.S. National Economic Council Director Gary Cohn discussed state and local tax breaks in a Jan. 5 interview.Source: Bloomberg

New Jersey’s governor-elect joined a chorus of leaders in Democratic states who are proposing workarounds for their residents to avoid new caps on state and local tax deductions -- even as a top Trump administration official suggested the federal government might act to limit such strategies.

Phil Murphy, a Democrat who will be sworn in as New Jersey’s governor on Jan. 16, said Friday he’s working on a plan that would effectively convert property taxes into charitable gifts. Murphy joins New York Governor Andrew Cuomo and California Senate President Pro Tem Kevin de León, who have also said they’re considering ways to shield their constituents from a new $10,000 federal cap on state and local tax deductions.