Published on 12/15/17
NJCPA Member Tony Nitti, CPA, Tax Partner at WithumSmith+Brown and Contributor at Forbes.com Skyped with us to discuss the Senate and House tax reform compromise bill.
Republican Tax Plans Will Increase Taxes for More Than 70 Percent of New Jersey CPAs’ Clients, Says Poll
December 11, 2017
ROSELAND, N.J. – More than 70 percent of the 865 certified public accountants (CPAs) who were polled in December by the New Jersey Society of CPAs (NJCPA) said their individual and family clients in New Jersey would face increased taxes due to the Republican tax plans from both the House and the Senate.
Both the Senate Republican plan, which passed on Dec. 2, and the House Republican plan, which passed last month, called for the elimination of state and local tax deductions, and would cap the deduction for property taxes at $10,000. Since other differences remain, both plans will go to conference to make the two bills compatible.
Close to 70 percent of respondents said that “almost all” of their clients currently take state and local income tax deductions. The income groups that would be most affected by any such elimination of those deductions would be the “$150,000-$325,000” income bracket, say 53 percent of survey respondents, followed by the “$75,000-$150,000” bracket at 49 percent. And almost 80 percent of respondents said they expect the net federal tax bill to increase for those clients in the $150,000-$325,000 income group.
“High-tax states like New Jersey would feel the bulk of the impact from this plan,” said Ralph Albert Thomas, CEO and executive director at NJCPA. “New Jersey businesses and residents should not be forgotten in the midst of tax reform.”
Additionally, NJCPA survey respondents said elimination of the state and local tax deduction would either “definitely” (40 percent) or “somewhat” (39 percent) influence their advice to clients on whether to leave New Jersey. Only 22 percent said “not at all.”
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- Full survey results can be accessed here.
- Ralph Thomas, CEO and executive director of the NJCPA, is available for interviews on these survey results. Contact Rachael Bell at email@example.com or 973-226-4494 x220.
The New Jersey Society of Certified Public Accountants, with more than 15,000 members, represents the interests of the accounting profession and advances the financial well-being of the people of New Jersey. The NJCPA plays a leadership role in supporting the profession by providing members with educational resources, access to shared knowledge and a continuing effort to create and expand professional opportunities. Visit njcpa.org.