Real Estate News
--> New Jersey News
Hold your nose, NJ — the tax plan cometh
We’ll probably revisit this plenty in the future, but whatever your politics, this is an abysmally bad deal for New Jersey. For starters ... pull out for a low-cost state in the flatlands. The real estate industry, one of the state’s most important ...
Everyone from the media to tax planners to the people who voted for it are still digesting the Republican tax bill that squeaked through the U.SSenate in the dark of nightWe’ll probably revisit this plenty in the future, but whatever your politics, this is an abysmally bad deal for New Jersey.
For starters, let’s focus on property taxes, the ultimate Garden State bugaboo and a problem that would be significantly worse under the tax plan President Donald Trump wants to make his first piece of significant legislation.
Let’s start with property tax deductionsThe ability to deduct state and local taxes is essentially the only thing keeping the lights on in New Jersey, where the average property tax is nearly $9,000, but plenty of municipalities approach — or exceed — $20,000.
The House trims the so-called SALT deduction to $10,000; the Senate version holds the SALT altogetherNow, combine that with proposed changes to mortgage interest deductionsThe Senate bill maintains the status quo — deductions of up to $1 million on up to two homes — while the House halves it to $500,000 on a first home only.
What are you left with? Not much of a workforceWith property taxes taking a bigger bite out of savings, and homes and existing mortgages suddenly far more expensive, you’ll see companies having a harder time recruiting talent in New Jersey.
The Garden State has long built its economy on how close it is to New York; with costs becoming what they are, many executives will decide to just bite the bullet and consider a move to New York — or pull out for a low-cost state in the flatlandsThe real estate industry, one of the state’s most important sectors, will collapse as properties are foreclosed or abandoned and demand for new housing withers on the vine, taking thousands of construction jobs along with it.
And as to high-education positions banking on New Jersey’s strength as a STEM powerhouse, the House plan to eliminate exemptions for tuition waivers would force graduate students to pay taxes on scholarships, fellowships and the like, adding thousands of dollars to expensive degreesBusinesses in the “eds and meds” sector will have even stronger incentive to get out.
If you were trying to write a piece of legislation more damaging to New Jersey and its immediate neighbors, you would have a hard time doing worse than this.
Gov.-elect Phil Murphy has joined leaders in those states (and California) in saying he expects to fight tooth and nail to stop itLet’s hope the political neophyte is ready for the fight of his life, because New Jersey’s entire economy depends on it.
More Suitable for Work
Despite strong Black Friday, retail rethink must continue
Op-Ed: More roads won't fix our traffic problem
In any direction you drive, New Jersey's roads are too congested
var numLinks = $(".cl-tr a").size();
for (var i=0;i
Trending New Jersey News:
Charlotte's a top priority for California real estate firm's growth plans, exec says
Can a deal put the Congress hotel back in session again?
Wayne, NJ Real Estate: Newly Listed Homes for Sale
N.J. Announces New Captive Insurer; 8 Captives Approved Since 2011
Security footage of amorous real estate agents released to TV show
Local chapter of Multiple Sclerosis Society moves to Woodbridge
Do paint colors really matter when staging my home?
White Plains firm sues ex-client in Syms estate feud
As the Trump rally goes, real estate goes the other way: Except maybe this
New Jersey Is A Bad State For Business
Glen Rock Number 3 in Top Ten Places to Live in State: NJ Monthly
Top N.J. interior designer lists Summit showplace for $2.95M
Despite Bright Spots, Liquidity Issues Still Exist
Here's How Much Jared Kushner And His Family Are Really Worth
Caroline Manzo Talks Teresa Giudice Legal Scandal On 'Watch What Happens: Live' (VIDEO)
5 tips for real estate agents showing homes in the winter
Unique New Jersey: Legal Pitfalls in Real Estate Transactions
What Macy's closing means for 2 N.J. malls
Marlboro, NJ Homes For Sale & Real Estate
Video shows Trump in A.C. with mob figure he denies knowing, report says