Governor-elect Murphy, N.J. House Democrats Denounce GOP Tax Plan
NEWARK, N.J. – Today, Governor-elect Phil Murphy and Democratic members of the New Jersey House delegation discussed the impact of the House Republican’s tax plan on New Jersey. The plan is estimated to cost many New Jersey families thousands of dollars a year. A total of 1.8 million New Jersey households deduct a cumulative $17 billion in state income or sales taxes from their federal taxes. Those tax deductions would be eliminated under the House Republicans' bill. their plan also caps deductions on property taxes at $10,000 and removes deductions for student loans, medical expenses, and more.
Video from the event can be found here.
"The middle class has been squeezed with decades of anemic wage growth and rising costs for housing, healthcare, and education," said Rep. Pascrell. "Yet, at a time of historic inequality and record corporate profits, Republicans in Congress seem to think more corporate giveaways are the answer. I fought against their bill in committee because it will make homeownership, housing, and education more expensive for New Jersey families. The elimination of the State and Local Tax Deduction will devastate homeowners in New Jersey and hurt our economy overall. On top of the elimination of most itemized deductions and personal exemptions, this legislation amounts to a tax increase for the average New Jersey taxpayer. I will not stand for that."
"Let’s be clear what this plan would be — a massive tax hike on seniors, on the middle-class, and on working families in our state. There’s no other way to put it," said Governor-elect Murphy. "I am proud to stand with our Congressional delegation in opposing this scheme that would hurt our state and our residents. I said many times during the campaign that when New Jersey is targeted by wrong-headed policies coming from Washington, I won’t be silent. And I will continue to fight alongside our representatives to kill this bill."
"The Tax Cuts and Jobs Act would increase the national deficit and eliminate numerous deductions that millions of middle class families use every year to pay for cuts in the corporate tax rate and massive tax breaks for the wealthy," said Rep. Sires. "Particularly devastating for New Jersey is the partial repeal of the state and local tax deduction which has been part of the tax code for over 100 years and is used by many New Jersey families. The bill also does away with a standard deduction for the elderly as well as deductions for student-loan interest, medical expenses, and property losses. Tax reform should be a bipartisan effort to simplify the tax code in a way that is fair and stimulating for the economy, not a one-sided plan crafted behind closed doors that targets those who are most in need of tax relief."
"Republicans want to fund their billionaire friends’ tax cuts by taking the state and local tax deduction away from lower- and middle-income families. That doesn’t work for New Jersey, and it doesn’t work for the American people," said Rep. Payne. "I will continue to stand for a fairer tax plan that makes billionaires and corporations pay their fair share."
"Americans agree we need more jobs, higher wages and lower taxes, but the Ryan-Trump tax plan is just welfare for the wealthy paid for by hardworking families," said Rep. Norcross. "It rewards billionaires, prioritizes corporate profits and punishes New Jersey families by gutting critical state and local tax deductions. We must reject this bill that will do nothing to raise wages or bring real relief for working Americans."
"This Trump-Republican tax scam is dangerous and irresponsible all in the name of handing out billions in tax giveaways for millionaires, billionaires, and big corporations," said Rep. Watson Coleman. "Despite the misinformation peddled by proponents of this plan, New Jersey residents stand to be acutely and disproportionately harmed by this bill, where more than 1 in 4 of our families would pay an average of $2,200 more in federal taxes each year. It torpedoes state and local tax deductions. It slashes deductions on mortgage interest. It eliminates deductions for medical debt. It eliminates the student loan deduction. I know my constituents didn’t send me to Washington to raise their taxes so that the rich can get a tax cut and leave our children mired in trillions of dollars in debt. This proposal is just the latest example of the GOP’s true priority – lining the pockets of their donors and friends instead of working in the best interest of the people they represent. I will continue to stand with my colleagues to beat back this assault on the livelihood of New Jerseyans, our hardworking men and women and the families they support."
A recent New Jersey Policy Perspective report found that the bulk of the tax cut in the GOP tax plan would go to the top 5 percent of wealthy households in New Jersey. New Jersey would be the third hardest hit state as a result of the GOP tax plan. About 27 percent of New Jerseyans would see a tax increase of $2,200 in federal taxes.