GOP tax plan raises bipartisan concern in NJ

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EDISON -

New Jersey's congressional delegation is raising concerns over a Republican plan for federal tax reform.

READ MORE: Trump promotes 'giant, beautiful, massive' tax plan

Representatives of both parties say the plan would be unfair to New Jersey taxpayers. So do some taxpayers.

"If this proposal goes through, the American Dream will become an American nightmare," says Denise Gadot, who has lived with her husband, Baruch, in Fair Lawn for 22 years. "No incentives for young people to move in, to take our homes."

That's because the proposal would eliminate state and local deductions for income and property taxes -- a move that they say would disproportionality affect New Jersey taxpayers, who pay the highest property taxes in the country.

Rep. Josh Gottheimer, a Democrat, says it would amount to a $3,500 tax hike, on average, for every taxpayer in New Jersey. 

"You're going to be pushing people and businesses out of Jersey and raising taxes on all of us," Gottheimer says.

Republican Rep. Leonard Lance says he's pushing House Speaker Paul Ryan to leave the deductions in place. New Jersey sends more federal tax money to Washington than it gets back, he says.

"We don't want to exacerbate that situation, and that's why need to continue the deductibility of state and local taxes," he says.

Other Republicans are arguing that cutting out the deductions would force states to reduce their taxes.

The last major tax reform legislation was the Tax Reform Act of 1986 under President Ronald Reagan. Lance says that legislation took about two years to plan.

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