The “tax reform framework” proposed by the Trump administration and Congressional Republican leaders would cost one in four New Jersey taxpayers an average $2,400 more a year in federal taxes, according to new analysis by the Institute on Taxation and Economic Policy. And it would give the Garden State’s wealthiest 1 percent of taxpayers an average $74,000 tax break each year.
The ITEP report concludes that New Jersey will be one of the hardest hit states in the nation if the tax plan goes through. Under the plan, the state would have the second highest share (26.4 percent) of taxpayers facing a tax hike; Maryland would be hardest hit of all the states, with 30.5 percent of its taxpayers having to pay more, while North Dakota would suffer the least, with just 4.2 percent of its taxpayers on the hook for higher federal taxes. Nationally, 16.7 percent of taxpayers would see a tax increase.
New Jerseyans would be so hard-hit under the Trump-GOP plan because of its elimination of the state and local tax deduction, which disproportionately benefits high-service, high-tax states like the Garden State.