Statement on H.R.1, the Tax Bill
Statement
On Wednesday, December 20th, I voted "no" on H.R. 1 because while I believe that Americans are overtaxed, this bill does not provide needed tax relief for New Jersey residents.
The bill rolls back or entirely eliminates certain itemized deductions, and almost half--47%--of the taxpayers in my district itemize, claiming an average of $31,981 in deductions.
Foremost among these changes that I opposed was the effort to totally eliminate the state and local tax (SALT) deduction for income, sales, and property taxes. I fought hard to have the SALT fully protected and was not mollified by the provision that now permits a deduction but creates a new cap at $10,000. This provision, while in response to our efforts, including numerous meetings with leadership and the Ways and Means Committee--just isn't enough.
Some of the other restorations I sought--keeping the adoption credit and keeping the medical expenses deduction--were successful, yet on balance the bill was still unfair for New Jersey residents faced with the new cap on the SALT deduction.
New Jersey has one of the highest rates of tax filers using the SALT deduction, with over four in ten taxpayers (42%) using it; the average SALT deduction in my district is $18,355. Many New Jersey taxpayers, including homeowners who pay some of the highest property tax rates of any state, could see their taxes go up.
New Jersey residents already pay one of the highest tax rates per household to the federal government, but see one of the lowest returns on federal spending of any state. We need tax relief, but relief must be fair to the taxpayers of New Jersey.
The bill also allows for seismic testing as a prelude to eventual oil drilling in the Coastal Plain of the Arctic National Wildlife Refuge (ANWR) in Northwestern Alaska, which President Dwight Eisenhower originally selected for protection and conservation. I opposed this amendment to the bill, as I believe we should look elsewhere as a country to develop our energy resources.
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