New Jersey "worse off" if itemized deductions eliminated, said Jay Soled in Asbury Park Press

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Saturday, September 30, 2017
Asbury Park, NJ

Asbury Park Press

New Jersey is home to half of the 20 counties nationwide that would be hit hardest by President Donald Trump's tax plan, according to a New York University study released Friday.

That's because they get big deductions from state and local taxes that the plan wants to eliminate, said Patrick J. Egan, the study's author and professor in the NYU department of politics.

Will the more robust standard deduction be enough to offset the loss of itemized deductions?

It begins to get complicated, depending on several factors, including the size of their property tax bill, said Jay Soled, a professor of accounting and information systems at Rutgers Business School in Newark and New Brunswick.

But New Jersey, an affluent state, ranked second in the percentage of taxpayers who used itemized deductions instead of standard deductions, according to a decade-old study by the Tax Foundation.

"Any high tax jurisdiction where you got the advantage of getting a deduction is worse off than a state like Alabama or Louisiana, where most people took the standard deduction," Soled said. "Now they'll get double the deduction."

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TAGS: Accounting and Information Systems Jay Soled Taxation