The recent tax legislation released by the Republican leaders of the House of Representatives would hit New Jersey hard, according to various estimates.
The plan will eliminate New Jersey taxpayers’ ability to deduct state income or sales tax and will have their valuable property tax deduction capped at $10,000. The elimination of the income and sales deductions will negatively affect four out of every 10 taxpayers in New Jersey, who dedcuted more than $17 billion on their federal returns in 2015.
The elimination of the property tax deduction is problematic for New Jersey congressmen, who would have to vote for a plan that would raise the taxes of their constituents.
According to NJ.com, Hudson County taxpayers would lose out on $915 million. In 2015, 28 percent of all Hudson County households claimed the deduction. Luckily, Secaucus’ perennially low taxes means many homeowners will escape harm.
The House plan is likely to be dramatically rewritten by the Senate. But early indicators are that the deductions are still on the chopping block.