The New Jersey Society of CPAs (NJCPA) surveyed accountants recently on the implications of the tax plan Republicans are pushing in Washington, D.C. Seventy percent of 861 CPAs said that if the Republican plan goes through, their Garden State clients will have to pay higher taxes. (The GOP plan calls for the elimination of state and local tax deductions, and would cap the deduction for property taxes at $10,000.)
The CPAs, who noted that “almost all” of their clients take state and local income tax deductions, said hit hardest would be those in the $150,000 to $325,000 income bracket (53 percent), followed by those in the $75,000 to $150,000 bracket (49 percent).
Rather ominously for the long-term health — or, perhaps, wealth — of the Garden State, the CPAs said that elimination of the state and local tax deduction would “definitely” (40 percent) or “somewhat” (39 percent) color the advice they give clients on whether to move out of New Jersey. Only 22 percent said it would affect their advice “not at all.”