Earlier this week, the Senate rejected a bid by democratic members to overturn IRS regulations prohibiting states from creating charitable funds that taxpayers can contribute to in exchange for a state tax credit. The creation of the credits was an attempt by high-tax blue states such as New York, New Jersey and California to get around the $10,000 cap on state and local tax (SALT) deductions passed as part of the 2017 Tax Cuts and Jobs Act. As states adopted the workaround scheme, the IRS issued rules stating that taxpayers can only claim a charitable deduction for donation amounts that exceed the amount of state tax credits they received, effectively negating the effect of the workaround.