SENATE RESOLUTION No. 15

STATE OF NEW JERSEY

INTRODUCED FEBRUARY 15, 1996

By Senators LESNIAK, McGREEVEY, Lipman, Adler, Rice and MacInnes

A Senate Resolution memorializing the Congress of the United States not to pass a flat tax federal income tax proposal.

Whereas, The emerging 1996 Presidential campaign and current Congressional measures have highlighted proposals to change the current graduated federal income tax rate schedule and replace it with a single rate or a “flat tax” for all Americans, and

Whereas, The current graduated federal rate structure is designed to place a higher tax burden on wealthy Americans with higher incomes and to give lower and middle-income Americans the benefit of a reduced tax burden to enable them to maintain a basic standard of living, and

Whereas, A single, flat tax rate will reduce taxes for wealthy Americans who can afford higher taxes, and

Whereas, Because low-income citizens would be exempt and most wealthy Americans would see a rate reduction under the flat tax, middle-class Americans would be forced to shoulder a disproportionately large burden under such a proposal, and

Whereas, By eliminating income tax deductions for the interest paid on home mortgages, a flat tax proposal will make the cost of participating in the American dream and owning a home beyond the reach of many New Jersey residents, and

Whereas, By eliminating income tax deductions for local property taxes, the costs of a flat tax will be felt most accutely in New Jersey where this State's local property tax is the highest in the nation, and

Whereas, Due to the fewer number of Americans who can afford to purchase a home, a flat tax would reduce home values by as much as 15 to 30 percent, and

Whereas, By eliminating the federal income tax deductions for charitable donations, a flat tax proposal will reduce donations to American charities such as churches, schools, hospitals and relief organizations that have already been severely impacted by reductions in state and federal aid, now, therefore,

    Be It Resolved by the Senate of the State of New Jersey:

    1. A flat tax federal income tax proposal is counter to the interests of New Jersey taxpayers because it would promote the interests of wealthy citizens at the expense of average New Jerseyans.

    2. Because New Jersey has the highest local property tax in the nation, the elimination of the property tax deduction from the federal income tax will hurt New Jersey taxpayers greater than any other state.

    3. The Senate of this State requests that the Congress of the United States reject a flat tax federal income tax proposal.

    4. Duly authenticated copies of this resolution, signed by the President of the Senate and attested by the Secretary of the Senate, shall be transmitted to the Speaker of the House of Representatives, the Vice President of the United States and each member of Congress elected from this State.

STATEMENT

    This Senate resolution memorializes the Congress of the United States to reject the flat tax.

Urges Congress to reject flat tax federal income tax proposals.