The republican led tax code overhaul would eliminate state and local income and property tax deductions. Congressman Leonard Lance believes his party’s plan puts Garden State taxpayers at a financial disadvantage.
“We have average property tax bills in this state of $8,400 dollars. In the district I serve it’s higher than that. In the country as a whole it’s $2,400 dollars,” Lance said.
Democratic Rep. Bill Pascrell says it would cost the average New Jersey resident about $3,500 a year.
“More than 4 in 10 New Jersey taxpayers deduct their state and local income taxes from their returns each year. There is no benefit in this reform proposal before us that outweighs the cost to homeowners and working families across the state,” Pascrell said. “We subsidize other states and now they want us to give even more. We’re a donor state. New Jersey gets back thirty-eight cents for every tax dollar it gives to Washington.”
Eliminating state and local tax deductions was discussed the last time there was major US tax code reform over thirty years ago.
“I think our leadership wants to move relatively quickly. I do not predict this is going to move quickly,” Lance said. “The last time there was major tax reform was in 1985-86. It took two years and it was bipartisan.”