Urges Congress to protect NJ taxpayers from the negative impact of recently enacted federal tax legislation
NJEA supports ACR-145 (Freiman, Downey), which urges Congress to immediately explore options to lessen the impact of the 2017 federal tax reform legislation on New Jersey taxpayers. Among other changes affecting New Jersey residents, the legislation put a $10,000 cap on deductions allowed for state and local taxes paid. New Jersey taxpayers across the State and of all income levels utilize the state and local tax deduction to lower their federal tax burden.
The new $10,000 limit on the state and local tax deduction will increase the federal tax liability of many taxpayers, leaving those taxpayers with fewer dollars to spend on food, healthcare, education, and other everyday living expenses. New Jersey residents are harmed by the deduction limit more so than taxpayers of almost all other states because New Jersey has the third highest percentage of taxpayers utilizing the deduction in the country and those utilizing the deduction in the state deduct an average of $17,850, the fourth highest state average in the country.
The 2017 federal tax reform legislation unfairly burdens New Jersey taxpayers who when compared to taxpayers from other states send more income tax dollars to the federal government than taxpayers in most states. In New Jersey, news reports suggest that New Jersey property tax payers are unanimous in the view that the 2017 federal tax bill could have a negative impact across the state. Several analyses of the 2017 federal tax reform legislation show that only corporations will see permanent benefits under the plan.
NJEA urges you to vote “yes” on ACR-145.
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