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McKeon: Oppose Trump Plan to Hurt New Jerseyans by Eliminating Property Tax Deduction

Assemblyman John McKeon on Friday asked New Jersey’s Congressional delegation to oppose any plan by President Trump that eliminates tax deductions for state and local taxes.

“In a devastating blow to New Jersey residents, who already pay the highest taxes in the nation, eliminating these deductions would increase the average annual tax bill for a middle-class New Jersey homeowner,” wrote McKeon (D-Essex/Morris), in a letter to the delegation.

Trump has proposed eliminating federal deductions for property taxes, and McKeon noted New Jersey is among the six states where residents benefit the most from being able to deduct their state and local taxes.

“More than a third of the state’s taxpayers would have to pay an estimated $3,500 more each year as a result of this proposal, which comes as New Jersey property taxes remain on the rise, with the average bill increasing by nearly $200 in 2016, up to a record high average of $8,549,” McKeon wrote.

McKeon noted statistics that show in 2015, on a per person basis, New Jersey sent $2,659 more to Washington in taxes than it got back in federal spending, more than any other state. The average New Jersey taxpayer paid $18,367 in federal income taxes, behind only Connecticut, $22,785; New York, $19,782; and Massachusetts, $18,997. That’s $4,316 above the national average of $14,051.

“These facts, combined with the reality that New Jersey makes the choice to primarily fund our schools with local property taxes, as opposed to states who use other sources, makes eliminating this federal tax deduction exceptionally draconian,” McKeon wrote. “Once again, I respectfully implore you to oppose any tax reform plan that eliminates state and local tax deductions as this would do great damage to middle class taxpayers in New Jersey.”

A copy of McKeon’s letter can be viewed here.