Live in New Jersey? It will cost you.
According to a study by Self, a financial technology company, New Jersey residents pay an average of $ 931,698 in taxes over a lifetime, more than residents of any other state. That’s nearly half a taxpayer’s lifetime income of $ 1.9 million.
Much of this is due to New Jersey property taxes, which are the highest in the country, averaging more than $ 9,000. New Jersey was ranked third for income taxes, 18th for sales taxes, and 43rd for automotive taxes.
The West Virgins had the lowest tax burden in the country at $ 321,023. or a quarter of their average income of $ 1.3 million.
The high taxes in New Jersey and elsewhere illustrate why these states were hardest hit by the Republican tax law cap of $ 10,000 for state and local taxes known as SALT.
Legislators from these states are seeking to lift the cap on Capitol Hill as part of President Joe Biden’s proposed legislation to levy taxes on wealthy Americans and businesses to fund infrastructure, education, and childcare.
“I strongly support the lifting of SALT, the cap is being removed, and I will do everything I can to make it happen,” said Chuck Schumer, Senate Majority Leader, DN.Y. Schumer declined to answer whether he would stop Biden’s legislation if no changes were made to the trigger.
Five of the top ten states with the highest tax burden, including New Jersey, send more money to Washington than they get for services, and a sixth has breakeven, according to the Rockefeller Institute of Government at the State University of New York. (West Virginia received $ 2.15 for every US dollar paid in federal taxes.)
Five states, including New Jersey, would be the only states where more than 1% of their taxpayers would face a higher tax burden under Biden’s proposals, according to the Progressive Institute for Taxes and Economic Policy.
In six of the ten states, including New Jersey, the percentage of federal income taxes paid to the federal government under the GOP Tax Act increased.
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Jonathan D. Salant can be reached at [email protected]. Follow him on Twitter at @JDSalant.
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