From the APP:
New Jersey taxpayers would lose key deductions under a proposal unveiled this week by President Donald Trump: property taxes and state income taxes, experts said.
The tax reform plan would hit New Jerseyans hard, they said, forcing them to give up rare benefits they received for living in a high-tax state.
“That will really sting New Jersey residents,” said Anthony Nitti, a tax partner with WithumSmith+Brown.
Trump’s tax reform plan is designed to improve economic growth through a simpler system that includes fewer tax brackets and lower corporate taxes.
It’s a bid to overhaul the U.S. tax system for the first time since 1986 – a task that seems every bit as complicated as Congress’ failed attempt to repeal the Affordable Care Act, commonly known as Obamacare.
The proposal already has run into opposition, particularly in New Jersey. The state’s real estate lobby warned that eliminating the property tax deduction would cause home values to plummet as much as 10 percent.
“Right now there’s kind of a basket to what goes into the affordability (of homeownership), and unfortunately in New Jersey we have the dubious honor of (having) the highest real estate tax in the country,” said Bob Oppenheimer, president of the New Jersey Association of Realtors.
“That would certainly put ice water on homeownership versus renting, and actually give … New Jersey a clear cut edge to renting.”
How it shakes out, though, isn’t clear. Trump has yet to provide details on what incomes would fall into what tax brackets.
“They want to lower taxes for the middle class, but nobody has said what the middle class is,” said Dawn Greenberg, tax principal at Cowan Gunteski & Co. in Toms River.
With the elimination of all but two itemized deductions, though, some New Jersey taxpayers could have to carry a heavier tax burden for the nation.