TRENTON, NJ - During a New Jersey Senate session today, Sen. Joe Pennacchio (R-Essex, Morris, Passaic) reiterated his proposal to abolish New Jersey’s $10,000 property tax deduction limit. He made the following statement on the Senate floor:
“I, too, want to lend my name to the chorus of opposition to the removal of SALT deductions from our Federal tax returns. But at this point, it seems all we are doing is complaining. However, we do have comparable issues with non-deductibility of Federal taxes from our State returns. There are a myriad of deductions that New Jersey does not allow, such as charitable deductions, capital gains, and 401(k) contributions.
Sen. Joe Pennacchio reiterated his proposal to abolish New Jersey’s $10,000 cap on its property tax deduction.
“The U.S. House of Representatives version of tax reform allows a $10,000 deduction for property taxes. Currently, there is no maximum. Unfortunately, there is a maximum on what our state allows us to deduct. New Jersey’s tax burden, I may add, is the highest in the nation. That deduction is no different than what Congress is proposing – a $10,000 maximum!
“It is not within the State Legislature’s direct power to change Federal tax reform. However, it is within our power to change New Jersey tax policies. Let’s be honest and consistent with the citizens of our state. You cannot complain about Federal tax policy when we have it within our power to change the same policy on the State level. Let’s soften the blow of those Federal SALT eliminations.
“My bill, S-3598, would lift the maximum deduction allowed by the state and in doing so slightly reduce the burden on New Jersey Taxpayers. Let’s not just complain about our suffocating taxes. Let’s do something about it.”