MacArthur Votes Yes, Calls House Tax Reform Bill Real Relief

WASHINGTON, DC — Calling it "real relief for families and businesses," Rep. Tom MacArthur of New Jersey's Third District voted in favor of the House's Tax Cuts and Jobs Act, in what Republicans hope will lead to the first overhaul of the federal tax code in 30 years.

In a statement released after the vote, where the bill passed 227-205, MacArthur — the only New Jersey Republican to vote in favor — said the bill "provides real relief for families and businesses — by simplifying the tax code, reducing rates, doubling the standard deduction, providing tax credits for childcare and care of adult dependents, and eliminating the AMT (alternative minimum tax) that has trapped working families."

MacArthur also said he fought for the restoration of a property tax deduction, which he said benefits all property owners in South Jersey. The average homeowner in Burlington and Ocean Counties respectively pay $6,682 and $6,102 in property taxes annually, MacArthur said. The amended tax bill allows a deduction of $10,000 for property taxes.

"Our tax code hasn’t been updated in 31 years — it’s outdated, over-complicated and needs to change. It burdens working Americans with sky-high rates and is filled with special loopholes that benefit the favored few. The Tax Cuts and Jobs Act puts an end to this."

Jon Whiten, vice president of New Jersey Policy Perspective, ripped MacArthur's vote, saying, "MacArthur chose to put his political party ahead of the people of New Jersey and his own constituents."

Whiten said the bill, once it is fully phased in, would give New Jersey’s wealthiest 1 percent of taxpayers an average tax break of $25,100 tax break a year while raising federal taxes an average of $2,200 per year for 27 percent of the state's households.

"This is the third highest share of households with a tax increase of all 50 states," Whiten said, adding it results in an estimated net total tax increase of $137 million on New Jersey residents "without any public investment to show for it."

Whiten said that while the House bill makes the standard deduction for individuals and families more generous, the elimination of the deduction for state income and sales taxes — which New Jersey Policy Perspective said at least one of which is taken by 1.8 million New Jersey households — and other itemized deductions such as medical expenses, will hurt many families. The state income and sales tax deductions are worth a cumulative $17 billion a year.

On Monday, MacArthur told a group of reporters that he planned to vote yes on the tax reform bill because of the amendments that he had helped push through, and said he would continue to work to get the medical expense deduction, currently part of the Senate version of the bill, added in.

"There is no such thing as a perfect bill," he said. "If I waited for the perfect bill to vote yes, nothing would get done."

"Congressman Tom MacArthur has worked tirelessly to ensure property tax deductions are included in our tax reform plan,” said Rep. Kevin Brady, chairman of the House Ways and Means Committee. “I appreciate his leadership as we work to pass historic pro-growth tax reform.”

“I came to Washington, DC, to get things done and work to improve the lives of my constituents, not walk away from tough fights," MacArthur said Thursday. “In the end, we built consensus, got results, and working families will reap the benefits, while enjoying significant rate cuts on their income taxes.”

Rep. Tom MacArthur speaks to reporters Monday in Bayville. Photo by Karen Wall, Patch staff