NJ Politics Digest: SALT Tax Limit Not Really Driving Folks Away—Yet

 

Senate Majority Leader Mitch McConnell (R-KY) talks with reporters after leaving a tax reform news conference in on Capitol Hill on November 30, 2017 in Washington, D.C.

Senate Majority Leader Mitch McConnell (R-K.Y.) talks with reporters after leaving a tax reform news conference in on Capitol Hill on November 30, 2017 in Washington, D.C. Chip Somodevilla/Getty Images

There’s been a lot of talk about how the limit on state and local tax deductions included in the Republican tax overhaul will drive people from high-tax states.

But according to NJ.com, a new report by Moody’s Investors Service has found “no discernible signs yet” that the $10,000 cap on SALT deductions is leading to increased outmigration.

The Moody’s report notes that this year is the first that taxpayers will feel the full force of the limit on deductions, so the jury is still out on its overall impact. But the investor service also notes that job availability and demographic trends also have an impact on where people choose to live, according to the NJ.com report.

Moody’s also said it found the rate of people leaving high-tax states isn’t much different from those leaving lower-tax states, according to NJ.com, with Moodys saying that New Jersey ranked 29th in outmigration in 2017.

That’s a big difference from The United Van Lines National Movers Study, which has found the state leading the nation in outmigration.

The Moody’s report also found that many people moving out of high-tax states are moving to other high-tax environments for employment.

The bigger problem for New Jersey may be its poor business climate—it ranks 38th in job growth since 2010. This encourages people to leave the state looking for opportunities while discouraging other people from moving here, Moody’s said.

Quote of the Day: “Why is he opposing every other one, but not (North Bergen)? That won’t create any energy for the people of New Jersey,” — former Gov. Chris Christie on Gov. Phil Murphy’s support for the Meadowlands power plant.

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NJ Politics Digest: SALT Tax Limit Not Really Driving Folks Away—Yet