Democrat Floats Paying for SALT Cap Repeal With More Tax Audits

Representative Josh Gottheimer said a repeal of the $10,000 cap on state and local tax, or SALT, deductions could be offset by cracking down on tax cheats, the first proposal from Democrats as a way to pay for revival of a valuable tax break.

The New Jersey Democrat said Monday that increasing funding for the Internal Revenue Service to boost enforcement efforts could yield enough money to pay for reinstating the full SALT deduction as well as a portion of President Joe Biden’s $2.25 trillion infrastructure package.

Josh Gottheimer speaks outside the U.S. Capitol on April 15.

Photographer: Sarah Silbiger/Bloomberg

“We need the administration’s support to increase investment for enforceability,” Gottheimer ...