One of the most controversial provisions of the Tax Cuts and Jobs Act is the $10,000 limitation placed on the SALT deduction. The limitation is expected to negatively impact all high-tax states, especially New Jersey. This thesis seeks to discover if each and every county in New Jersey is expected to be negatively impacted by the new provision. The study analyzes the average itemized deduction and average SALT deduction of each county from tax years 2011 to 2016 to determine what the expected average itemized deduction would be in tax year 2018. The analysis finds that 20 out of 21 counties are expected to see a lower average SALT deduction in 2018 and thus, a majority of New Jersey taxpayers will be negatively impacted by the limitation. These affected taxpayers are expected to see higher federal tax liabilities in 2018 than in previous tax years.

Last modified

• 10/23/2019

Creator

• Shiwkumar, Melanie

Contributors

• Professor Andrew Pogogeff, Thesis Advisor

Publisher

• Saint Peter's University

Date created

• May 2019

Resource type

• Research Paper

Rights statement

• In Copyright