It's official: President Trump wants to ditch that big federal income tax break you get every year.

As part of a much-awaited reform package, the Trump administration announced Wednesday that it plans to dump the federal property tax deduction for state and local taxes that saves New Jerseyans, on average, $3,522 a year. During a press conference on Wednesday, Treasury Secretary Steven Mnuchin said the Trump administration plans to eliminate all tax deductions other than mortgage interest and charitable deductions.

"We think that will be sweeping reform," he said during the press conference (see his comments below, beginning at 10:40). Read more: New Jersey Towns With The Highest Tax Bills In 2017

Mnuchin and Gary Cohn, chief economic adviser to Trump and director of the National Economic Council, said the financial hit property owners would take would be offset by economic growth and an overall tax cut. Few specifics were offered, but Trump's plan would cut the tax rate paid by businesses to 15 percent. The number of individual income tax brackets would be reduced from seven to three, which would likely lead to a tax cut for people across the board.

"Our basic premise here is to simplify the tax system and lower rates," Cohn said. "We don't want to penalize people. We want to make the system very fair."

But critics saw the plan as a giveaway to corporations and a tax cut that will likely benefit the rich while removing a deduction that property owners have come to depend on.

A study from the Tax Policy Center says that ditching the property tax deduction for state and local taxes would cost New Jerseyans who take the exemption an extra $3,522, while Pennsylvania taxpayers would pay $2,182 more. Read more: 565 New Jersey Towns That Pay The Highest, Lowest School Tax Bills