While Democrat Congressman Josh Gottheimer has been engaging in histrionics of the most dubious kind, a liberal think-tank has been doing its research and calculations. What it's come up with undermines the hysterics put out by Nancy Pelosi, Gottheimer, and his status-quo allies in the "problem keepers" caucus.
The Institute on Taxation and Economic Policy (ITEP), a liberal advocacy group, recently concluded that New Jersey would save nearly $9 billion in federal taxes in 2019, thanks to the Tax Cuts and Jobs Act. Please review their findings yourself by clicking here for a spreadsheet with their analysis: https://t.co/GW6n37OXUn
Contrary to what Nancy Pelosi, Gottheimer, and the "problem keepers" have been saying, the Institute on Taxation and Economic Policy concludes that New Jersey will pay less in federal taxes under the new tax reform and job creation legislation passed by Congress. The study includes these key findings:
- New Jersey residents will save nearly $9 billion in federal taxes in 2019;
- 81% of New Jersey residents will receive a tax cut and a further 8% would see no change in their taxes at all;
- The vast majority of taxpayers in every personal income bracket will see a tax cut, with most receiving a substantial tax cut;
- The average taxpayer in New Jersey will get a tax cut of more than $2,000.
Along with 81% of taxpayers getting a tax cut, small businesses are going to pay much less. It will be the lowest tax rate since World War II -- drawing in new investment for the expansion of existing enterprises, allowing new start-ups, creating thousands upon thousands of new jobs and opportunities. With billions less going from New Jersey to Washington, that money will be freed up to spend in our communities.
Even before the new tax reform and job creation legislation was passed, there was a sustained positive reaction from companies with local employees -- like OceanFirst Bank, AT&T, Comcast, Wells Fargo, Boeing, and Bank of America -- providing bonuses and pay-hikes to their employees. These businesses are already using their anticipated savings to invest in their employees for the future, and it is clear that the Tax Cuts and Jobs Act is going to put more money in the pockets of hardworking taxpayers in New Jersey.
The doom and gloom coming from Nancy Pelosi, Gottheimer, and the "problem keepers" only works if you distort the figures. The Institute on Taxation and Economic Policy study makes clear that the doom and gloomers make sense only if you allow them to erroneously assume that Congress will allow the tax cuts to expire -- and even then this is only true for tax years beginning in 2027.
Nancy Pelosi, Gottheimer, and the "problem keepers" are arguing in the face of history, which has taught us consistently that politicians who want to be re-elected -- even liberal Democrats like President Obama -- do not end tax cuts when faced with the option, but rather, extend them. And with the broad consensus being that middle-class tax cuts must be made permanent (even Bernie Sanders says so) there is little chance that the scenario upon which Pelosi, Gottheimer, and the "problem keepers" base their doom and gloom will, in fact, ever materialize.
Instead of the drunken hysterics and all the mental illness being shopped around by the media about this (when they are not focused on a royal wedding or the latest installment of who touched who) interested citizens should be doing their own research and soberly studying the changes and benefits in the new tax reform and job creation package. It will be well worth the time spent.