What Tax Changes Are in Store for New Jersey in 2018?

Date: January 17, 2018

 

In the wake of the tax bill signed into law by President Trump, New Jersey legislative leaders are evaluating measures that could mitigate the impact.

Although many small business owners nationwide are cheering the passage of the tax bill, in some states, the legislation will mean a tax hit. For example, NJ.com reported, the new law now caps the federal deduction of local and state taxes paid at $10,000, which is less than what many New Jerseyans currently pay. In response, U.S. Rep. Josh Gottheimer and Gov. Phil Murphy are considering a plan that would allow residents to contribute to local and state “charitable support funds” to pay for education and infrastructure in exchange for a tax credit and reduction to their property tax burden.

Senate President Stephen Sweeney has also said he would consider experimenting with setting up countywide school districts. Maryland does this and spends about half of what New Jersey does on public education, NorthJersey.com reported. Sweeney noted that the passage of the federal tax bill gives New Jersey leaders a reason to examine the state’s tax policy to make it work better and more efficiently.

NFIB/NJ will be closely monitoring the Legislature’s tax policy proposals as the 2018 legislative session progresses.

 

Related Content: Small Business News | Economy | New Jersey

Subscribe For Free News And Tips

Enter your email to get FREE small business insights. Learn more

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More

Or call us today
1-800-634-2669

© 2001 - 2022 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy