August 15, 2018

Gannette: NJ Suit Over SALT Deduction Would Help the State’s Richest 1.5 Percent the Most

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That reality has led some who joined Democrats in complaining about way tax cuts were distributed to criticize efforts to overturn the SALT cap.

This may be a moot point, however, because tax attorneys said the lawsuit has little chance of succeeding. Yet the politics behind it merit attention.

Overall, a study by ITEP found that in every income group, a majority of New Jersey taxpayers will pay less next year than they did in 2017.

But studies show that while every state had more winners than losers, there were more losers in states with high local taxes such as New Jersey. Among New Jersey taxpayers making $79,890 to $142,390, for example, ITEP estimated that 17 percent would face a tax increase next year. Only 5 percent of a similar group in Texas faced a tax increase.



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