Expand / Collapse search
☰

Federal tax overhaul leads Murphy to propose new deduction

Published  January 6, 2018 8:39am EST
U.S.
FOX 29 Philadelphia

FAIR LAWN, N.J. (AP) - New Jersey's incoming Democratic governor says he wants to allow residents to pay property taxes as charitable contributions as a way to push back against the new federal tax overhaul.

Phil Murphy said Friday the proposal was a "first step" in pushing back against the Republican-sponsored tax plan.

Under the law, which President Donald Trump recently signed, state and local tax deductions on federal returns are capped at $10,000.

That's an issue because New Jersey has the highest property taxes in the country, and roughly two out of five tax claim state and local tax deductions.

Under the proposal, taxpayers could pay property taxes as charitable contributions. Those could then be deducted on federal returns.

He announced the proposal in Fair Lawn, alongside Democratic Reps. Josh Gottheimer and Bill Pascrell.