Lawmaker Inks Legislation To Protect Mortgage Interest Tax Deduction

WESTFIELD, NJ – Rep. Leonard Lance (NJ-07) joined New Jersey families, REALTORS® and small business owners at a news conference today – Tax Day – at the Westfield Post Office to call for the end of skyrocketing federal, state and local taxes that unfairly burden New Jersey taxpayers. 

“Today is Tax Day and for millions of America’s working families that means it’s time to pay the taxman. Here in New Jersey, our working families know much far too much about paying the taxman,” said Lance. “Garden State residents have one of the highest costs of living in the country – including skyrocketing federal, state and local taxes. This year, New Jersey taxpayers – myself included – are saying ‘enough is enough.’ From the Governor’s Mansion in Princeton to the White House in Washington, our Executive Branch leaders are proposing to raise taxes on New Jersey families who simply can’t take it anymore.”

During the news conference, Lance also announced his plans to introduce legislation to protect the mortgage interest tax deduction for more than 170,000 New Jersey tax filers.

Lance pointed out that the President’s budget, as currently written, unfairly targets tens of thousands of Seventh Congressional District homeowners who already face one of the highest costs of living in the nation – especially through skyrocketing income and property taxes. Specifically, the President’s fiscal year 2010 budget proposes to reduce the mortgage deduction from 35 percent to 28 percent on those households making more than $250,000.

“My constituents are not ‘super rich.’ They are hard-working, middle-class families facing some of the highest taxes in the country,” said Lance in front of the Westfield Post Office. “The mortgage tax deduction allows New Jersey’s homeowners to keep more of what they earn. It makes absolutely no sense to propose raising taxes on home owners and home buyers at a time of economic crisis.”

According to the National Association of REALTORS®, more than 173,000 New Jersey tax filers earn enough to be adversely affected by the proposed cut — the fifth highest total in the nation. New Jersey Association of REALTORS® (NJAR®) President Diane Dilzell supports Congressman Lance's efforts and says she looks forward to reviewing the legislation upon its introduction.

“In a costly state like New Jersey, limiting the amount of mortgage interest a family can deduct from their taxes will have a significant negative impact on housing recovery efforts and limit many people’s ability to enter the housing market,” said Dilzell who is a broker-associate/manager at Pinnacle, REALTORS® of Bedminster. "We greatly appreciate Congressman Lance's efforts on behalf of New Jersey’s REALTORS® and homeowners."

Several New Jersey small business owners and New Jersey families also participated in Lance’s tax day news conference. Lance also talked with New Jersey taxpayers who are mailing their federal tax returns at the Westfield Post Office.

According to the America’s for Tax Reform, New Jersey taxpayers will spend 211 days a year working just to cover the cost of government – the second highest burden nationally. New Jersey also has the highest state and local tax burden, the second highest business tax burden and the state collects more property taxes per capita than any other jurisdiction.

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