Write Pascrell and Murphy about the House Republicans’ proposed tax plan,
“We are facing record income inequality, yet the Republican tax plan would be a massive wealth transfer from the least able to the top earners. It would give a stunning $1.3 million windfall, on average, to the top one-tenth of one percent of income earners while the bottom 80 percent would not see any noticeable change in their after-tax income at all.
Pascrell and Murphy break down what the proposed tax cuts for the wealthiest Americans would mean for our state, “New Jersey would be hit particularly hard by this plan, so it is time we speak up not only for America, but for New Jersey.”
The plan would be especially devastating for New Jersey’s middle class families in “Eliminating the ability of middle class families to deduct their property taxes on their federal returns. Gutting the property tax deduction is nothing but a tax increase on New Jersey families.”
“The plan also would reduce the number of homeowners eligible for the mortgage interest deduction, which adds value and stability to our housing market. Living in a state with some of the highest housing prices in the country, New Jersey residents know what a critical benefit this is.”
Without the mortgage interest deduction, some middle-income families may struggle to pay their mortgages, cover their healthcare expenses and handle a crisis like a major car repair.
Pascrell and Murphy conclude,
“Congressional Republicans should not be meddling with our tax code at the expense of our state and the middle class. To combat this, we need leaders in Trenton and fighters in Washington who will recommit to the idea of tax fairness. The tax code is no place for partisan politics or state-by-state favoritism.”