Both Treasury Secretary Steven Mnuchin and Ivanka Trump painted the reform effort as bringing relief to the middle class and stimulating business growth by cutting corporate tax rates. | Getty Mnuchin, Ivanka Trump plug GOP tax reform, say House, Senate effort ‘very close’

BAYVILLE, N.J. — Despite key differences between the House and Senate versions of the Republican tax reform bill, Treasury Secretary Steven Mnuchin said Monday the effort was “very, very close.”

“There are some specific differences, but generally the two bills are very close and, more important, the objectives are the same, which is middle income tax cuts and making business competitive,” Mnuchin said at an event in Ocean County with Ivanka Trump, the president's daughter, and Republican Rep. Tom MacArthur.


Both Mnuchin and Trump painted the reform effort as bringing relief to the middle class and stimulating business growth and competition by cutting corporate tax rates.

Trump said she believed the House and Senate were in "complete alignment in that vision."

Republicans in high-tax states like New Jersey, New York and California are proving to be a stumbling block to getting the reform bill passed, since many are balking at a cap, or potential elimination, of the state and local property tax deduction, known as SALT.

On Monday, Trump, Mnuchin and New Jersey Gov. Chris Christie, an early and ardent supporter of the president, were trying to sell the bill in one of the states that could have among the most to lose when it comes to reducing or eliminating the SALT deduction.

New Jerseyans pay the highest property taxes in the nation; the average bill totaled just over $8,500 in 2016, according to data posted by the State Department of Community Affairs.

“This conversation is about making sure that when we talk about tax reform for the first time since 1986 — 31 years ago — that we get the kind of tax reform package that helps to grow our economy, grow jobs, grow incomes in this country,” Christie said.

More than 70 miles away in Newark, Democratic Gov.-elect Phil Murphy joined six of the seven Democratic members of the state’s congressional delegation to decry the plan, calling it a “tax sham.”

“They’re desperate to get something done and they’re making stuff up,” Murphy, who was elected last week by double digits, said at a press conference. “This is not a tax cut; this is a tax sham.”

The House version of the bill, H.R. 1 (115), includes a $10,000 cap on the property tax deduction, but doesn’t allow for a deduction on state income and sales taxes. The Senate version eliminates the SALT deduction entirely.

MacArthur, who represents a swing district that includes Burlington and Ocean counties, originally came out against the House tax plan saying $10,000 cap, it was “too low.”

But he quickly reversed course the next day and said the cap was a “victory,” since the vast majority of New Jerseyans would benefit.

Around 40 percent of New Jersey taxpayers claim the SALT deduction, according to the Tax Foundation.

MacArthur's support for the bill is likely the reason Trump and Mnuchin traveled to New Jersey on Monday, in the hopes other Republicans who might be on the fence will follow suit and jump on board.

All of New Jersey’s congressional Republicans could be facing tougher re-election campaigns next year, as results from last week's gubernatorial election indicated a backlash against President Donald Trump from residents in well-educated, suburban districts that may otherwise lean Republican.

Mnuchin said “nobody has fought harder” than MacArthur for the SALT deduction.

“I’m here to tell you I’m in the yes column and I’m continuing to fight as I have been to make this a better bill,” said MacArthur, in whose district Monday's event was held.

This isn’t the first time MacArthur has aligned himself with the president in a very public manner. He played a key role in revamping the House GOP Obamacare replacement bill.

“I think there are enough of us that believe this is a fair compromise that we’ll get this bill passed in the House this week,” MacArthur told reporters after Monday's event. “I can’t test this for every single taxpayer, but I have yet to find anybody whose taxes don’t go down if we get the bill that I’m pushing for through.”

The event was invitation only, with the guests selected by the White House and MacArthur’s office. It was moderated by MacArthur, who asked his own questions, along with questions submitted by attendees on notecards.

A group of protesters gathered outside the Bayville Fire Hall held cardboard signs with slogans, such as “STOP SALT ASSAULT” and “STOP giving my $$ away to Big Biz + Billionaires!”

Ivanka Trump stressed that the reform bill would make the tax code “simpler” and the increase in the standard deduction and the child tax credit, as well as a new credit for non-dependent children, would benefit “working families.”

“When you think about the fact that 94 percent of Americans require professional assistance to fill out their taxes, that’s absurd,” she said. “That doesn’t benefit the ordinary American. That benefits the ultra-wealthy who can afford the accountants and teams of lawyers to find the loopholes.”

As it became clear the event was wrapping up, a woman from the audience began interrupting Trump.

“You’re not taking questions from the audience?” shouted Marianne Clemente of Barnegat. “I have a question.”

“You’re not the only one,” a man in the audience shouted in response. “Why don’t you keep quiet and let her talk.”

“Thank you for your engagement. You’re really driving this tax plan and this process, so we greatly appreciate that,” Trump said.

Ryan Hutchins in Newark contributed reporting.

UPDATE: This story has been updated with additional information and color from the event.