Is President Donald Trump responsible for home values in Essex County? Point the finger somewhere else, some local residents say.
Recently, ProPublica and Fortune released a list of the 30 counties which have seen the largest percentage declines in the values of their homes after the Trump administration enacted its controversial Tax Cuts and Jobs Act of 2017.
Essex County – where homeowners saw an 11.3 percent dip – was right at the top of the list.
The 2017 tax reforms capped federal deductions for state and local real estate and income taxes at $10,000 a year and also eliminated some mortgage interest deductions. However, that’s not the reason property values are stagnating in New Jersey, said Adam Kraemer, a Republican candidate for the Essex County Board of Chosen Freeholders.Subscribe
The study and the reporting of the study, may be accurate on a technical basis. but is misleading in telling what is really occurring because of the omission of certain other parts of the economic situation in the state of New Jersey and omitting other parts of the changes in the tax code from 2018 forward. The capping of the the state and local tax credit at $10,000 against federal income tax in combination of lower federal tax rates for all and larger standard deductions for federal income tax fillers that started in tax year 2018 was a progressive tax change. People, with less income rent more often and if they own homes they tend to be of lesser value and thus subject to less property tax. Those with lower income, also tend to have less state income taxes. Thus lower income tax filers did not benefit from previous federal tax code, with regard to state and local taxes being deductible from federal income taxes. So the negative impact of the federal tax code change was on people in New Jersey and in other places, with high incomes who paid a lot in state income tax, and/or those with high value homes that paid a lot in property taxes. The reduction in corporate tax rate in the nation has resulted in increased wages and increased job growth across the nation as corporations had more cash on hand to invest and grow business. Even in New Jersey, a state know for high business taxes and extensive regulation on business job growth occurred and wages increased. Thus, the tax code has generally, been good for the nation and for New Jersey.