The Trump Administration‘s tax plan is getting mixed reviews in the early going, Save Jerseyans, with the U.S. Chamber of Commerce and some on Wall Street jumping for joy and others, like the National Association of Realtors and even in the president’s own party, questioning whether some of the changes will do more harm than good for the country’s embattled Middle Class.
One of the concerned voices is Leonard Lance (R, NJ-07), who says he’s happy to talk tax reform but won’t budge in his opposition to one key element of the current proposal.
“One provision I oppose is the elimination of the state and local tax deduction,” declared Lance in a Wednesday statement to the media. “New Jersey taxpayers would lose under that plan. I will be a leading voice in negotiations for maintaining that deduction.”
Trump’s proposal is dramatic; the current seven income tax brackets would be replaced by three new brackets, the corporate tax rate would be cut by more than 50%, the alternative-minimum tax and estate tax would go away, and the standard deduction would nearly double.
Lingering questions? Besides the fate of the deductions cited by Lance?
Which income levels qualify taxpayers for the new brackets.
For New Jerseyans, the planned end of the property tax deduction could spell higher tax bills for many residents given our status as the state with the highest property tax burden.
Eliminating state and local deductions could increase New Jersey residents’ average tax bills by $3,500+.
Still, Lance is optimistic that the discussion is at least (finally) happening.
“It has been more than a quarter century since comprehensive tax reform was last enacted in Congress. It’s time to level the playing field for U.S. companies so they can invest in and create new American jobs and compete with rivals abroad. And it is time for hard-work to be rewarded and not punished by an outdated system.”