NJ congressional delegates concerned about GOP tax plan

Posted: Updated:
EDISON -

New Jersey is one of the few states where even some Republican members of Congress are opposing or expressing concerns about the GOP tax reform plan.

Many say that the concern lies with New Jersey’s high property taxes and housing costs.

Many New Jersey residents say that homeownership is worth it because of the economics surrounding it. Owning a home will allow a person to build equity. They can also deduct the amount they pay in mortgage interest and property taxes from their federal income taxes.

But to varying degrees, the House and Senate tax bills would limit or end those deductions.

RELATED: Kellyanne Conway comes to New Jersey to push GOP tax plan
RELATED: NJ Democrats and Republicans hold opposing events on tax reform

Gary Large of the North Central Jersey Association of Realtors explains about how much it will actually cost to buy a home for first-time buyers. If a New Jersey resident buys a house at $400,000, with the current deductions, “you’re going to save $454 a month,” according to Large.

“That was the critical component to getting those first-time buyers to be comfortable making that jump,” Large says.

Supporters of the bill say that the loss of the deductions will be offset by Americans paying less overall in federal income tax.

But Large says that it could lead to a downward spiral in the real estate market as more people do the math and decide to just rent.

“Let it be the landlord’s problem,” Large says.

New Jersey's congressional delegation remains largely opposed to the tax reform measures. Only Republican Tom MacArthur has supported the bill, but MacArthur says that he will only vote “yes” if the bill keeps property tax deductions intact.

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