newjerseynewsroom.com

Moves to full upper house for a vote

Legislation to provide New Jersey's middle-class senior citizens and retirees with an income tax cut was approved by the Senate Budget and Appropriations Committee Thursday and sent to the full upper house for consideration.

Senate President Stephen M. Sweeney (D-Gloucester), the sponsor, believes the tax break would help seniors meet their property taxes and keep their homes.

"Instead of simply giving the rich all the tax cuts in the hopes it will trickle down, we should be allowing seniors and retirees to keep money in their pockets so they can afford to stay in New Jersey," Sweeney said. "Allowing them to stay here for the long-term instead of taking their retirement savings elsewhere will benefit our economy far more than another tax break for the rich."

Under the bill (S-2345), seniors whose total earnings fall under $100,000 would be exempt from paying taxes on any income from a pension or deferred compensation plan. The change would put New Jersey on par with Pennsylvania, which is one of only two other states — Illinois and Mississippi — to have a similar retirement income tax exemption.

Sweeney said New Jersey should focus on helping middle-class retirees stay in their hometowns.

"Seniors who can stay in New Jersey are consumers who will shop in their towns and help stabilize their local economies," the senator said. "Seniors who have spent years in their homes are the bedrock of their communities and local economies."

— TOM HESTER SR., NEWJERSEYNEWSROOM.COM