House Bill Would Be a Disaster for New Jersey Working Families
Newark, New Jersey – 32BJ SEIU today called on NJ Reps. McArthur and Frank LoBiondo to vote “No” on the Republican tax plan that is expected to be voted on in the House of Representatives today.
“It’s time for Reps. McArthur and LoBiondo to kill this horrendous bill that trades the healthcare, education and jobs of his middle class constituents for more tax breaks to the wealthy. NJ would be particularly hard-hit by the tax increase for middle class families. The rushed timeline of this bill is short, but the memory of voters is long. They will not soon forget the members of Congress who voted for Medicare and Medicaid cuts that would devastate seniors, children, and working families,” said Kevin Brown, Vice President of 32BJ SEIU.
The vote in Congress is expected to be very close, and Reps. McArthur and LoBiondo have been identified as some of the swing votes who could decide the fate of the legislation. If the tax plan becomes law:
• 34% of the tax cut will go to the richest 1% in New Jersey by the tenth year.
• 27% of New Jersey households would see their taxes increase in 2027 by $2,040 on average.
• The overwhelming majority of New Jersey taxpayers will get a taxincrease ranging from $530 to $2,290 on average
• New Jersey would be among the states hardest hit by the partial repeal of SALT
Harmful Effects in New Jersey from Partially Repealing the State and Local Tax Deduction
- In New Jersey, 41% of all taxpayers claim the SALT deduction, which averages $17,850. [Source: Tax Policy Center] In New Jersey’s 3rd Congressional District, 43% of taxpayers claim a SALT deduction of $12,000 on average. [Source: Government Finance Officers Association]
· Under the GOP tax plan, a middle-class couple with two children owning a home in New Jersey’s 3rd Congressional District could face a tax increase of up to $3,700 next year—due to the partial repeal of SALT. [Source: Americans Against Double Taxation]
- The GOP tax plan makes major changes to the state and local tax deduction (SALT). It would repeal the deduction for state and local income and sales taxes while preserving the deduction for property taxes up to $10,000. Even with the “compromise” to partially preserve the property tax deduction, the tax plan would cut the total amount of state and local tax deductions by 88%. This move, in combination with other elements of the GOP tax plan, would raise taxes on the middle class and undermine state and local public services. [Source: Institute on Taxation and Economic Policy]
- Currently, taxpayers can deduct state and local property taxes, and either income or sales taxes, from their federal taxable income. Over a third of taxpayers making $50-75,000 use the SALT deduction, and over half of those making $75-100,000. In addition to boosting taxes on many middle-class families, repeal of the deduction for income and sales taxes will make state and local taxation more expensive, putting pressure on states and localities to cut budgets for services like roads and schools. [Source: Government Finance Officers Assoc.]
A full report on the impact for NJ’s 2nd Congressional can be found here:
A full report on the impact for NJ’s 3rd Congressional can be found here: