The new federal tax law has generated a lot of press, sparked a fair amount of outrage, and left many elected officials scrambling to respond with sound policies.
Unfortunately, there seems to be widespread confusion about the winners and losers under the new law — confusion that is complicating efforts to clean up New Jersey’s tax code and raise new resources to invest in critical public services.
The facts are well established about what this tax plan really does. It disproportionately benefits those at the very top, providing a windfall for corporations and the wealthiest households and peanuts for the working people of New Jersey. To wit: New Jersey’s families with annual incomes over $1 million will see an average annual tax cut of $30,440 under the new law, whereas the bottom 60 percent — those with incomes of $80,000 or less — can expect a whopping $520.