Government

US Rep. Payne, Jr., Speaks Out Against GOP's Plan to Eliminate State & Local Tax Deduction

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Rep. Payne, Jr., Speaks Out Against GOP's Plan to Eliminate State & Local Tax Deduction
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WASHINGTON, D.C. –  Rep. Donald M. Payne, Jr. (NJ-10) spoke on the House floor in opposition to the Trump-Ryan-McConnell tax plan’s proposed tax cut for the richest 1 percent of Americans and tax hike for 26.4 percent of New Jersey households in 2018. The average tax increase for families under the GOP’s proposed tax plan is $794 a year. The GOP plan would eliminate the federal deduction for state and local taxes.

“Eliminating the federal deduction for state and local taxes will take money out of people’s pockets and out of New Jersey to fund tax cuts for the wealthiest Americans,” Rep. Payne, Jr., said. “That doesn’t work for New Jersey, and it doesn’t work for the American people. If you pay state and local taxes on your hard-earned money, the federal government should respect that. After all, state and local taxes pay for our roads, our schools, our police, and all the essential services we rely on each day.”

Rep. Payne, Jr., released a new report detailing the deep damage the Trump-Ryan-McConnell tax plan would inflict on middle-income families in New Jersey.  While 80 percent of the tax benefits in the GOP plan go to the wealthiest 1 percent alone, 1.2 million hard-working families in New Jersey would pay higher taxes.

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The state-by-state report finds that under the Trump-Ryan-McConnell framework:

·         1.2 million households will pay higher taxes;

·         The average nationwide tax increase for families earning up to $86,100 would be $794;

·         1.8 million New Jersey households will lose their state and local tax deduction, worth an average deduction of $17,850;

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