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perhaps if NJ took 40% of its funding from the Federal Government like MS and KY did we could have lower taxes too, but instead we'll keep paying for the extra services we get and now pay even more.
You make a point, but not a strong one. There are many states that are less taxed and rely less on federal aid than NJ. Federal share for 2015:
New Jersey: 28.6%
Wisconsin: 27.5%
Minnesota: 27.2%
Kansas: 24.1%
Virginia: 21.5%
North Dakota: 18.4%
The list goes on and on. Even Pennsylvania, which is right around the corner, covers 30.6% of it's general revenue from federal aid, which is quite comparable to NJ. Yet, PA residents carry smaller state and local tax burden than NJ residents.
IMO sadly: If you're "counting dollars" before purchasing in NJ, perhaps it's not a great idea TO purchase in NJ - just saying. This goes for a lot of hard working people in our state considering the same.
I don't mind the extra hundreds each month and can withstand it, but I don't want to be overpaying now in this weird limbo period where houses could drop 10% in value, but since it hasn't passed yet I'd be overpaying and it'd take longer to make up for that.
That is basically what is going to happen if this tax bill passes. It completely changes the balance of the rent vs buy equation, especially here in New Jersey where confiscatory property taxes are already stripping homeowners of billions in private wealth. So not only is property tax deductibility lost, but the basic demand for homes is gutted. So if you just recently found yourself finally above water from recent increases in property values, the State is about to push your head back below the water level, where they feel it belongs.
And your silence is tacit permission. Yet do we hear any protests? Not much. Most are quietly going to accept this travesty. And they deserve what they get. There are plenty of protests to release disgusting convicted criminals from prison, but deafening silence when the State comes a calling to strip you of what you earn and own. They count on the fact that you are busy and your life is hectic, and you are doing exactly what they hoped: Nothing at all.
So when your home drops 10% in value and your income tax bill jumps 30%, don't beotch. It will be too late and you will already have bent over and invited the invasion.
Being a bit dramatic are we?
Not all houses going to drop in value in NJ, those located in decent areas with lower property tax by comparison will be positively affected as buyers will now consider this as a more important factor in their buying decision. Generalizing here but for example paramus, edgewater, and certain parts of jersey city where taxes are considerably lower than the norm due to massive large retail footprint(and tax abatement) that offsets the tax burden will be positively affected. Areas where it currently has extremely high property tax like montclair, glenridge, millburn etc.. will be more negatively affected.
Bigger problem to me is the state income tax deduction elimination - it is across the board, and given the high amount NJ pays, it make the state less competitive. There is no ambiguity here, you basically just flat out lose this money each year on your tax return, for everyone who has an income.
I don't mind the extra hundreds each month and can withstand it, but I don't want to be overpaying now in this weird limbo period where houses could drop 10% in value, but since it hasn't passed yet I'd be overpaying and it'd take longer to make up for that.
I'd be more worried about buying in a town that hasn't had a reval in many years, such as Jersey City. People on the wrong end of a reval could see their property taxes go up dramatically - bigger losses than any effect of this tax "cut."
Everyone who isn't a massive corporate entity with billions off shored should be whining.
Anyone else who benefits from this bill is going to see those benefits phase out within 10 years.
I own a couple investment properties and I'll do great. The tax bill was custom-tailed to favor Trump's interests, which just happen to coincide with mine. I'm opposed to the bill, though. I'd rather pay more and give the breaks to people who really need them.
Most businesses were hit with new limits on deductions for interest payments, but not real estate. Most industries lost the ability to defer taxes on the exchange of similar kinds of property, but not real estate. Domestic manufacturers and pharmaceutical companies lost some industry-specific breaks, like the tax credit for so-called orphan drugs, in exchange for lower rates.
The real estate industry ended up with an even more generous depreciation timetable, allowing owners to shelter more income.
And in a break from previous practice, rental and mortgage-interest income qualifies for a lower tax rate, the kind of special treatment traditionally reserved for long-term capital gains and certain qualified dividends.
“Real estate does great,” said Daniel N. Shaviro, a professor of taxation at New York University Law School, who as a congressional staff member helped write the 1986 tax overhaul. “It’s hard to imagine what they might have asked for that they don’t have.”
Bigger problem to me is the state income tax deduction elimination - it is across the board, and given the high amount NJ pays, it make the state less competitive. There is no ambiguity here, you basically just flat out lose this money each year on your tax return, for everyone who has an income.
Yes there is for anyone who is currently on AMT and can not deduct either the state tax or the property tax. Mainly upper middle class families with two professionals working... If they end up abolishing AMT, those families can at least deduct property tax.
ive generally avoided getting too specific. its a service business so the more employees i have, the more money i make. of course, we need to get the work for them to do but we are good at that.
My wife has a service business- personal training and she has decided to limit expansion because she does not want to deal with the issue of employees. I give you credit being a business owner is difficult. My wife can get plenty of clients to expand however based on the nature of what she does she has concerns that if she hired they would either not be as good as she would like or ultimately spin off into their own business and attempt to steal her clients.
You make a point, but not a strong one. There are many states that are less taxed and rely less on federal aid than NJ. Federal share for 2015:
New Jersey: 28.6%
Wisconsin: 27.5%
Minnesota: 27.2%
Kansas: 24.1%
Virginia: 21.5%
North Dakota: 18.4%
The list goes on and on. Even Pennsylvania, which is right around the corner, covers 30.6% of it's general revenue from federal aid, which is quite comparable to NJ. Yet, PA residents carry smaller state and local tax burden than NJ residents.
I think the difference in Virginia is how everyone is taxed. When you register your car, you're taxed. I think it's their luxury tax. There's taxes on everyday items. I was used to just paying $1.25 for comic books here in NJ. But there it was like $1.47 because they tax on paper products. It always messed me up because my total was never the even amounts I was used to. That's probably why they rely less on federal aid, and state and local taxes are lower. They're getting hit elsewhere.
Kansas is a terrible example. Look at what has happened to the economy in Kansas.
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