newjerseynewsroom.com

Middle-, low-income would save $45 to $80, millionaires would save $7,265 to $25,205

BY TOM HESTER SR.

NEWJERSEYNEWSROOM.COM

Gov. Chris Christie’s State of the State address Tuesday drew criticism from Democrats, especially about his proposed 10 percent across-the-board state income tax cut, and praise from Republicans and business.

The Assembly Democrats declared the proposed tax cut is designed to benefit the wealthy and means little for middle- and low-income New Jerseyans.

Figures released by the Democrats show people with an income of $50,000 would save $80.50, while those earning between $150,000 and $3 million would save from $551.25 to $25,205.75.

Assembly Speaker Sheila Y. Oliver (D-Essex) described the tax cut as “a nice sound bite.

“For the last two years, the governor has ignored the economic and social realities of the working poor,” the Assemblywoman said. “All of the cuts that have been instituted by this administration have disproportionately equated to tax hikes on those who earn the least.

“A 10 percent across-the-board income tax cut might make a nice sound bite, but ultimately it benefits the wealthiest far more than low and middle income earners,” Oliver said. “Essentially, what was proposed today was an $80 tax cut for families earning $50,000 and a $7,200 tax cut for families earning $1 million. And in order to achieve this, roughly $1 billion in revenue will have to be diverted from somewhere else.

“The obvious question is: Where will this money come from?,” Oliver said “And will it cut further into education funding or vital social programs that our poorest residents rely on as a lifeline?”

Deborah Howlett, president of the Trenton-based liberal think tank New Jersey Policy Perspective, said, “A 10 percent across-the-board income tax cut would mean that New Jersey would lose $1 billion in revenues. This disinvestment in the state has to stop. If there is truly to be a Jersey comeback, the state must first recognize how far we have fallen and then commit to an agenda that will allow all of us to prosper."

Howlett added, “While some claim a New Jersey comeback has begun, those who can’t find a decent job or cover their mortgage are left to wonder: when will we get to take part?

"All of us are being asked to pay more and we are getting less,” Howlett said. “Transit fare is higher, even though services were cut. Property taxes are higher, but teachers and cops are laid off. College tuition has gone up. Tolls were hiked. Fees increased. Meanwhile, the state is handing out hundreds of millions of dollars in tax subsidies to business for new office buildings, shopping malls and luxury casinos.”

Philip Kirschner, president of the New Jersey Business and Industry Association, called the tax cut proposal a bold move.

“Governor Christie’s bold plan to cut New Jersey’s income tax rates for all New Jerseyans will boost the state’s economy and encourage businesses to expand and create jobs for New Jersey workers,” Kirschner said. “The governor has made it clear: New Jersey is not going to return to the high-tax policies of old, but will build upon the many bipartisan successes that have improved the state’s business climate and created private-sector jobs. After a two-year period that saw major property tax reform, ongoing regulatory reform and enactment of major business tax reforms, the stage has been set to go even further.

The governor understands that putting more money in the hands of the private sector will generate the jobs and economic activity we need to not only solve our current fiscal problems, but also put us on a path to be an economic powerhouse again,” Kirschner said.

Senate Republican Leader Tom Kean Jr. (R-Union) said, “In government, we should do what is proven to work and learn from what has failed. New Jerseyans are more optimistic about the future of our state and her economy today than they have been in years because legislative Republicans and Governor Christie have taken our state in a different direction.