As expected, although contrary to general Republican talking points, the GOP’s final federal tax plan will raise taxes for the average middle-class and low-income family in New Jersey while cutting taxes for wealthier families.
According to a new report from New Jersey Policy Perspective, a liberal think tank, the GOP’s plan will give the bottom 60 percent of families in the state — those with incomes below $111,000 — what amounts to less than 0 percent of the tax cut. That’s because the GOP plan will load them up with another $331 million in taxes. And, after crunching the numbers, NJPP estimates the top 1 percent of households in the state — those with incomes above $1.4 million — will do nicely; they can look forward to an average tax cut of $8,470.
The plan will also increase by 340,000 the number of New Jerseyans without health insurance by 2027, as a result of its repeal of the Affordable Care Act’s individual mandate.
“Like so many families across the country, Republican leaders in Congress are busy this week making last-minute preparations for Christmas,” said Jon Whiten, NJPP’s vice president and author of the report. “They are wrapping their expensive gifts to large, profitable corporations in this tax bill that they are rushing through — but they’re buying these presents on layaway, and all of us will be the ones to pay the hefty price when the bill comes due.”