The new federal tax law raises taxes for the average middle-class and low-income New Jersey family while cutting taxes for wealthier families and for large corporations.
At the same time, it would increase the number of New Jerseyans without health insurance by 340,000 by 2027 thanks to the repeal of the Affordable Care Act’s individual mandate.
New Jersey households with incomes over $1.4 million (the top 1 percent) would receive an average $8,350 tax cut while the bulk of Garden State families (the bottom 60 percent, or those with incomes under $111,000) would see a tax hike averaging $120.
Taken all together, those families in the top 1 percent would receive 64 percent of the state’s share of the tax cut – $378.8 million in total – while the bottom 60 percent will pay a total of $333.7 million more in taxes under the plan.
About 26 percent of New Jersey taxpayers will see a tax hike under the Republican law.
The plan is a clear example of Robin Hood in Reverse, as it gives the largest average tax hikes to New Jersey’s poorest families while showering the state’s very wealthiest families with the biggest tax cuts. While just 1.6 percent of the state’s wealthiest 5 percent of families would see a tax hike, 3 in 5 families in the bottom 60 percent would.
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