The New Jersey Chamber of Commerce believes that effective tax reform can grow New Jersey's economy at the same time that it boosts the national economy. Any tax reform legislation should result in a net benefit for every state. The tax reform legislation introduced last week would not be positive for New Jersey. While some citizens and businesses in the state would benefit, many more would not.
This proposed legislation eliminates state and local tax deductions, which impacts 52 percent of families in New Jersey. It would limit property tax deductions to $10,000 and reduce mortgage interest deductions, both of which would erode property values, one of the most important financial assets for New Jersey families. Also many New Jersey taxpayers would see an increase in their federal taxes due to a change of rates.
This proposal is exactly what we do not need at this time.
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.
At a time when the vast majority of candidates for tomorrow's election, including both major gubernatorial candidates, are stressing the need to become more affordable and competitive, this legislation would make New Jersey less affordable and less competitive, and impede our ability to climb back to an acceptable level of prosperity.
For these reasons, we cannot support this legislation in its current form.
We urge everyone in New Jersey to contact their Congressional representatives and tell them to oppose this legislation and to replace it with a bipartisan approach that fixes the tax code in a way that is fair and equitable for everyone.
