Statement from Governor Murphy on IRS Ruling Against NJ Taxpayers

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Photo credit: Governor Murphy's Office

“The IRS today made clear it is not interested in fairness for New Jersey’s taxpayers. Instead, it protects President Trump’s politicization of the federal tax code.

Finalizing a rule that prohibits us from following decades of precedent to protect our residents’ tax deductions is a gut-punch to middle-class families who know that the Trump tax plan is a complete sham. We will continue to fight alongside our Congressional delegation and sister states to restore our residents’ full SALT deductions.”

2 COMMENTS

  1. How about NJ allowing deduction for Federal Taxes? The numbers will be the same, makes more sense, and will be fairer to states who charge lower income taxes.
    Example;
    Old method
    $100 income
    $10 state taxes 10%
    $90 net
    $27 Fed tax 30%
    $63 net income

    Proposed Method:
    $100 income
    $30 Fed tax 30%
    $70 net
    $7 state taxes 10%
    $63 net income

    Now let’s adjust it so the income stays the same
    $100 income
    $27 Fed tax 27%
    $73 net
    $10 state taxes 13.7%
    $63 net income

    The Feds already adjusted their bracket to keep the amount same or lower, so all the states have to do is allow full fed deduction and raise their percentage, but they cannot do it, because that will show everyone the true amount that the states are grabbing, and everyone will run to Florida!

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