National Tax Reform

 

Senate Tax Reform Bill Contains More Changes

Posted: November 17, 2017
The Senate Finance Committee committee spent the week amending their tax reform bill, and the final version includes some changes beyond those included in the chairman’s mark released on Tuesday.

House Passes Tax Reform Bill

Posted: November 16, 2017
The U.S. House of Representatives passed the Tax Cuts and Jobs Act bill, H.R. 1, by a vote of 227–205, on Thursday afternoon, with all Democrats and 13 Republicans voting no. The legislation as passed had not been amended since its approval by the House Ways and Means Committee last week.

Senate Tax Reform Proposal Differs from House Proposal in Key Ways

Posted: November 16, 2017
On Nov. 9, the Senate Finance Committee released a conceptual description of its version of tax reform. While some of the provisions of the Senate bill mirror the House bill, some key differences exist.

NJCPA Letter to NJ House Delegation on Tax Reform

Posted: November 15, 2017
The New Jersey Society of CPAs sent a statement to the New Jersey House Delegation regarding elements of concern in the House tax reform plan.

National Tax Reform — Questions for New Jersey Residents

Posted: November 15, 2017
Asking the right questions can help New Jerseyans get a picture of how GOP-backed tax reform will impact them.

Overview of the Senate Tax Bill

Posted: November 14, 2017
The AICPA Tax Advocacy team has provided a video overview of the Senate tax plan, including a comparison between the House and Senate versions on major provisions.

NJCPA Letter to NJ House Delegation on Tax Reform

 – November 15, 2017
NJCPA Letter to NJ House Delegation on Tax Reform

The New Jersey Society of CPAs sent the following letter to the New Jersey House Delegation regarding the House tax reform plan:


Dear Members of the New Jersey House Delegation,

On behalf of the more than 15,000 members of the New Jersey Society of Certified Public Accountants (NJCPA), I want to express our concerns about the House tax reform plan. While our members agree that the country needs tax reform that simplifies our code and cuts taxes for middle class families and businesses of all sizes, the House plan under consideration does not reform the tax code in a fiscally-responsible manner and is a blow to New Jersey residents and businesses.

Only two other states, Maryland and California, would see a greater percentage of their residents facing a tax increase under the GOP legislation than New Jersey's 27 percent.

The following elements of the House bill are of particular concern to our members:

  • Eliminating the deduction of state income and sales taxes – SALT, a provision that’s prevented double taxation since 1913, is disproportionately used by residents of New Jersey (around 40 percent of New Jersey taxpayers claim the SALT deduction) and other high-tax states that send billions of dollars more to Washington than they receive in services.
  • Capping the property tax deduction at $10,000 - The cap wouldn't cover the average property taxes in four New Jersey counties -- Essex, Bergen, Union and Morris -- which already exceed $10,000, according to the state Department of Community Affairs.
  • Limiting the deduction for mortgage interest to the first $500,000 of a home's purchase price – This limit could contribute to a loss of a home's value and a corresponding drop in property taxes, according to Fitch, one of the big three ratings agencies. This change could result in lower revenue growth prospects for local governments absent tax rate increases.

The House tax reform plan would make New Jersey less affordable and less competitive. If this legislation is approved, people and businesses will have another reason to leave New Jersey, and people thinking of living here or moving their business here will have another reason to look for an alternative.

In the interest of tax fairness, we strongly urge you to do all that you can to correct these inequities that harm New Jerseyans. Thank you for considering our views on this important issue.