Bill > SR40

This Resolution urges the federal government to remove the current limits on the amount of state and local taxes that individuals can deduct when filing their federal income taxes. Historically, taxpayers who itemize their deductions could deduct property taxes and either income or sales taxes paid to state and local governments. However, a federal law enacted in 2017, known as the Tax Cuts and Jobs Act, capped these deductions at $10,000 per household. This Resolution highlights that New Jersey is a "donor state," meaning it sends more federal tax dollars than it receives in federal funding, and that its residents, particularly those with high property taxes, are disproportionately affected by these caps, leading to financial strain and potentially causing people to leave the state, especially in light of economic hardships exacerbated by the COVID-19 pandemic. The Resolution argues that repealing these caps would provide much-needed relief to New Jersey residents, make the state more affordable, and stimulate economic growth.