Congressman Pascrell Fights To Keep Property Tax Deduction For New Jersey Residents
Washington, DC, February 17, 2012
As calls for tax reform put increasing pressures on lowering rates and cutting expenditures , U.S. Rep. Bill Pascrell, Jr. (D-NJ) today acted to protect one of the most substantial providers of middle class tax relief: deduction of paid property taxes from federal taxes.
Rep. Pascrell advanced a resolution urging that the the federal property tax deduction not be further restricted.
"To some people, the term tax reform means using a sledge hammer to drive federal income tax rates as low as possible. While lowering rates is our goal, the reality is that hammer just might whack one of the few areas where many middle class homeowners get a break on their taxes," said Pascrell. "Property tax increases have consistently outpaced increases to median home values and incomes. Nowhere has this been more apparent than in New Jersey, where homeowners pay the highest property taxes in the country. The average New Jersey homeowner has seen their property taxes increase by 66 percent since 2001, according to the state’s Department of Community Affairs. The reality is that the majority of our property taxes fund schools and social services. With demand for services outpacing local incomes and employment, state and local governments will continue to lean on property taxes to meet expenses. As New Jersey's only member on the committee charged with reforming our tax code, I will stand up for New Jersey homeowners as we lower rates to create a simpler, more equitable and efficient tax code.”
Rep. Pascrell's resolution has been endorsed by the National Association of Realtors, the National League of Cities, the National Association of Counties and the U.S. Conference of Mayors.
The Middle Class Tax Relief and Job Creation Act of 2012 (H.R. 3630)
I am pleased that today, I am witnessing a glimmer of hope that bi-partisanship based around enacting job creating legislation and helping the middle class is possible. This is something that has been sorely missed throughout the 112th Congress.
The actions we take today will put over $90 billion into the economy. In the Garden State, this means $100 million into the construction industry, over $285 million into manufacturing and the creation of almost 1,500 retail jobs. More importantly, this means families in Bergen, Passaic and Hudson counties will receive between $1,000 and almost $1,500 directly in their pockets over the course of the next year.
While people say this isn't a lot of real money, I will tell you, every dollar matters when people are in need and every dollar matters to help continue our economic recovery.
Over the last couple of months, we've seen signs that our recovery is accelerating, including 23 month of private sector job growth, 247,000 new jobs in added January, with the highest increase in manufacturing jobs since the late 1990s. This week, initial jobless claims dropped yesterday to their lowest level since March 2008, recent economic surveys showed strong gains in new orders, and the Dow Jones is at its highest level since May 2008.
However, despite this good news, now is not the time to take our foot off the gas. The President has proposed a whole list of job creating ideas contained within the American Jobs Act that will kick this recovery into high gear, including a $5 billion fund to hire and retain police and firefighters, and a bold plan to invest in American infrastructure, that stands in stark contrast to the politicized and broken bill we are debating in the House.
As we pass this legislation, we mustn’t stand here and simply savor this hard fought victory for the middle class, we should use it as a the foundation to further economic growth and create more jobs.