Nonpartisan budget expert shows millionaires would save big bucks under Christie's proposed tax cut | Economy | -- Your State. Your News.

May 29th
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Nonpartisan budget expert shows millionaires would save big bucks under Christie's proposed tax cut

money070111_optNew Jerseyans earning $50,000 or less would save no more than $80


New Jerseyans earning $50,000 annually would save $80.50 in state income taxes over three years under Gov. Christie’s proposed a 10 percent across-the-board tax cut while those making over $1 million would save $7,266 to $25,206, the budget chief for the nonpartisan state Office of Legislative Services said Monday.

Christie has proposed the tax cut, which would begin in 2013, as a sign New Jersey’s economy is recovering. And, if it becomes a reality, the governor can be expected to use it as a highlight of his accomplishments as he seeks re-election next year.

The Democratic-controlled Legislature opposes the tax cut, charging it is intended to mainly benefit the 12,600 New Jerseyans who earn more than $1 million annually.

David Rosen, the OLS budget expert, told the Democratic-controlled Senate Budget and Appropriations Committee the tax cut would cost the state government $1.7 billion over three years.

Rosen presented information that shows the 1.3 million New Jerseyans who earn $30,000 annually would save $45.50 over three years while the 737,000 residents who make $50,000 annually would save $80.50, and the 337,000 residents who make $100,000 would save $275.

Rosen showed that the 211,000 New Jerseyans who make $150,000 would save $551, the 91,300 residents who earn $250,000 would save $1,188, and the 28,800 residents who make $500,000 would save $2,780. The 12,600 New Jerseyans who earn over $1 million annually would save from $7,266 to $25,206.

Sen. Paul Sarlo (D-Bergen), the Budget Committee chairman, said Rosen’s presentation showed the governor's “tax scheme” would be a windfall for the wealthy with only meager savings for the middle class.

"We all want to cut taxes, but we want to cut the right taxes in ways that help those most in need and that provides the most benefit to the economy," Sarlo said. "The governor's tax scheme is measuring up as a billion-dollar windfall for the wealthy at a time when middle class families have been burdened even more with increases in property taxes caused by Mr. Christie's budget policies.

"Working families won't get enough of a refund to pay their weekly grocery bills while the wealthy will receive enough for a vacation at a five-star resort on the French Riviera," Sarlo said. "The question isn't 'who will pry money out of the cold, dead hands of legislators,' as the governor says in his YouTube videos, it's 'whose bank accounts will be the real winner'."

The Democrats also brought attention to a report by NJSpotlight that states property tax have increased more than 20 percent during Christie’s two years in office.


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