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>According to recent reporting, if we reinstated the SALT deduction, nearly a third of New Jersey residents — almost three million people — would get tax relief

>According to recent reporting, if we reinstated the SALT deduction, nearly a third of New Jersey residents — almost three million people — would get tax relief. As many as 80% of them have incomes of $216,000 or less. Hardly the 1%. https://www.northjersey.com/story/opinion/2021/05/17/salt-deduction-reinstatement-can-go-long-way-nj-ny-families/5093645001/ https://www.northjersey.com/story/opinion/2021/05/17/salt-de... NJ has very high property tax rates and high home values

lotsofpulp 5y ago
The writer used the word “average”, but it would be clearer if they used median, or quintiles or deciles. I could not find a source for the report they claim to be saying 3 million people in NJ would benefit. NJ income tax is ~4%, and average property taxes are not that high: https://www.nj.com/politics/2020/03/njs-average-property-tax-bill-hit-8953-last-year-see-the-numbers-in-your-town.html https://www.nj.com/politics/2020/03/njs-average-property-tax... It would be nice to find statistics by percentile, but I would find it hard to believe that many single households are living in houses paying $8k+ property tax, and married households are paying $16k in property tax. I use $8k and $16k because that would mean the remaining $4k and $8k would be for income tax for a person earning $100k/year (78th percentile) or a couple earning $200k per year (83rd percentile). https://dqydj.com/income-percentile-by-state-calculator/ https://dqydj.com/income-percentile-by-state-calculator/ Edit: the best way to figure out if the SALT caps hurt or not is to see if the amount of people itemizing on federal returns increased or not. I cannot find any NJ specific statistics, but IRS says only 11% of tax filers itemized in 2019.