Bottom 60 percent of earners would see higher tax bills, while richest 1 percent would get tax break of $71,960 a year
Middle-income and low-income New Jerseyans would pay more in taxes under the Congressional Republicans’ plan to extend the Bush tax cuts than they would under President Obama’s plan, while high-income New Jerseyans would pay far less under the Republican approach, according to a new analysis from the Institute on Taxation and Economic Policy (ITEP) and Citizens for Tax Justice (CTJ).
“The evidence is overwhelming that the Obama proposal is a much better deal for practically all New Jerseyans,” said Gordon MacInnes, president of New Jersey Policy Perspective. “This would be an excellent time for Governor Christie to use his growing influence with the right wing of the Republican Party to say ‘Whoa guys! Help us out here in Jersey. Show some bipartisanship and work it out with the President. I’ve pledged not to trample on the most vulnerable in our society. You should do the same thing.’”
Under President Obama’s proposal, in 2013, the poorest 20 percent of New Jerseyans would receive an average tax cut of $290 while the richest 1 percent would get an average tax cut of $19,020. Under the Congressional Republicans’ proposal, the poorest 20 percent of New Jerseyans would receive an average tax cut of $140 while the richest 1 percent would receive an average cut of $90,980.
The GOP plan would give 30.5 percent of the tax cuts to the richest 1 percent of New Jerseyans, leaving just 69.5 percent for the other 99 percent. The Obama plan would give 91.7 percent of the cuts to the 99 percent, and just 8.3 percent to the state’s richest 1 percent.