***VIDEO RELEASE*** Menendez: ‘NJans Can’t Afford to Subsidize Rest of Country Any More than We Already Do’

***VIDEO RELEASE*** Menendez: ‘NJans Can’t Afford to Subsidize Rest of Country Any More than We Already Do’

Trump Tax Plan spells pain for middle class NJans, huge relief for corporations & ultra-rich, hikes national debt by $1.5T

   

BLOOMFIELD, N.J. – U.S. Senator Bob Menendez (D-N.J.), a senior member of the Senate Finance Committee that sets federal tax policy, today stood with middle class homeowners in Bloomfield who will be hurt by the Trump Administration’s tax plan unveiled yesterday by House Republicans.  The elimination of middle class tax breaks for existing homeowners and the state sales and income tax deductions, among others, will potentially drive up taxes for millions of New Jersey residents.

 

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Sen. Menendez was joined at a news conference outside the home of Bloomfield resident Peter Tom, whose taxes would rise under the Trump Tax Plan, by Sen. Cory Booker, Essex County Executive Joe DiVincenzo, Bloomfield Mayor Michael Venezia and a representative from the N.J. Realtors Association.

 

11-3-17

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Essex County residents pay among the highest property taxes in the nation, with the average tax bill in Bloomfield of $10,447 for a home valued at $270,776, according to 2016 data from the N.J. Dept. of Community Affairs.

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tax proposal

The Trump/GOP tax plan hits individuals and families in higher cost states like New Jersey particularly hard in order to pay for massive tax breaks for corporations and the wealthiest Americans.  It would be middle and upper middle class taxpayers in New Jersey, New York and other higher cost states picking up the lion’s share of the bill for the top one percent in the rest of the country.

¨      Massively cuts the corporate tax rate from 35% to 20%, and eliminates the alternative minimum tax and estate tax entirely

  • These are giant giveaways to the wealthiest Americans and large corporations.

¨      Cuts income tax rate from 39.6% to 35% for anyone making between $470,000 and $1 million

  • This is a big tax cut for wealthy Americans, all while deductions the middle class depends upon are gutted.

¨      Ends the state and local income/sales tax deduction

  • This deduction is taken by 40% of New Jerseyans. Losing it means they will pay taxes on their taxes.
  • Yet the proposal allows corporations to deduct all of their state & local income and property taxes.

¨      Caps property tax deduction at $10,000

  • 35% of New Jerseyans take this deduction including thousands that take more than $10,000 (the average deduction taken for property tax in New Jersey is $9,200)

¨      New homeowners would only be able to deduct mortgage interest on homes costing up to $500,000 – cut in half from the current $1 million. Mortgage interest for second homes would no longer be deductible.

¨      Ends deductions the middle class has relied on for years

  • Repeals student interest deduction
  • Repeals medical expenses deduction
  • Repeals $4,050 deduction per dependent child and/or spouse
    • Although the child tax credit would be increased from $1000 to $1600.

¨      The top rate for pass-through businesses is dropped from 39.6% to 25%, yet 80% of such businesses currently pay under the 25% rate.  So this cut would only benefit the top 20% of pass-through businesses, disproportionately helping the wealthiest, while doing nothing for the vast majority of real small businesses. 

¨      The deduction that helps spur domestic manufacturing is eliminated. 

¨      In total, this bill would blow a massive hole in the deficit and force cuts to research and development, infrastructure, Medicare, and Social Security all to give a huge windfall to corporations and the top 1 percent.

  • The Joint Committee on taxation scored the bill as costing $1.51 trillion over 10 years.

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