“This will send a loud signal to New Jerseyans and would-be New Jerseyans, to families here now and families who have left, to businesses and job creators thinking of coming here and those who have struggled to stay: New Jersey is once again a place to plan your future, raise your family, grow your business and someday retire. The New Jersey comeback has begun.”
– Governor Chris Christie, State Of The State Address, January 17, 2012
Monday, February 27, 2012
Christie Balances Budget, Proposes New Tax Cuts
Tax Relief For All New Jerseyans
After Two Years Of Bold, Bipartisan Action To Put The State’s Fiscal House In Order, Governor Christie Is Proposing Sweeping Tax Relief For All New Jersey Families
GOVERNOR CHRISTIE IS PROPOSING A 10 PERCENT TAX CUT ACROSS THE BOARD AND INCREASING THE EARNED INCOME TAX CREDIT
Governor Christie Is Proposing A 10 Percent Cut In Every Income Tax Bracket, Providing Direct Relief For Struggling Families And Small Businesses.
· Beginning In January 2013, The Cut Will Be Phased In Over Three Years.
· The New Tax Rates Will Make New Jersey More Competitive, And Lift The Burden On Small Businesses And Entrepreneurship.
· Governor Christie: “In my budget, I will fulfill a promise I made to all the people of New Jersey in 2009. Real relief from the heavy income tax burden that has strangled our families and forced many to move away. I propose to reduce income tax rates for each and every New Jerseyan. In every tax bracket. By 10% across the board.”
Governor Christie Is Also Proposing Increasing The Earned Income Tax Credit To 25 Percent Of The Federal Tax Credit.
· The State EITC Will Be Increased From 20% To 25% Of The Federal Earning Income Benefit, Making It One Of The Most Generous Programs In The Country.
· The State Funding Commitment Of Approximately $280 Million Annually Will Mean The Average Eligible Family Will Receive A $550 Annual Benefit Once Fully Phased In.
· Governor Christie: “In 2010, our disastrous budget situation forced us to trim the earned income tax credit. With this budget, I propose to increase it, from 20% to 25% over the next two years. With my proposed increase, New Jersey will have one of the most generous state tax programs for the working poor in the nation – with an average annual benefit of 550 dollars.”
OPPRESSIVE TAXES HAVE LONG STRANGLED NEW JERSEY FAMILIES AND BUSINESSES
As Of 2009, New Jerseyans Had Faced The Worst State-Local Tax Burden For Three Consecutive Years. (“New Jersey's State And Local Tax Burden, 1977-2009,” The Tax Foundation, 2/23/11)
By The Time Governor Christie Took Office, New Jersey Had Been Ranked As The Worst State Business Tax Climate For Four Consecutive Years. (“State Business Tax Climate Index Rankings, 2006 - 2011,” The Tax Foundation, 10/26/10)
By 2009, New Jersey’s Highest In The Nation Property Taxes Had Increased More Than 70 Percent Since 1999. (Claire Heininger & Chris Megerian, “N.J. Property Taxes Climb 70 Percent In 11 Years, Remain Highest In U.S.,” Star Ledger, 2/26/10)
According To An October Rutgers/Eagleton Poll, 25 Percent Of New Jerseyans Named Taxes As The Most Important Problem Facing The State, Behind Only Unemployment, 27 Percent. (Matt Friedman, “Poll: Unemployment And Taxes Top List Of N.J. Residents' Concerns,” Star-Ledger, 10/25/11)
GOVERNOR CHRISTIE’S PROPOSAL BUILDS ON RECORD OF BRINGING REAL TAX RELIEF TO NEW JERSEYANS
In July 2010, Governor Christie Signed A 2 Percent Hard Cap On Property Taxes, Cutting Out Loopholes And Putting Control Back In The Hands Of Property Taxpayers. (Claire Heininger, “N.J. Gov. Christie Signs 2 Percent Property Tax Cap Bill,” Star Ledger, 7/13/10; Megan DeMarco & Eric Sagara, “Did N.J. Property Tax Reform Help Most Taxpayers?” Star Ledger, 1/8/12)
· New Jersey Homeowners Saw An Average Rise Of 1.7 Percent In Effective Property Taxes In 2011, “The Smallest Increase In Nearly Two Decades” (“The Governor’s FY 2013 Budget: Budget Summary,” Office Of Management And Budget, 2/21/12; Megan DeMarco & Eric Sagara, “Did N.J. Property Tax Reform Help Most Taxpayers?” Star Ledger, 1/8/12)
· Star-Ledger: “At Long Last, Tax Relief”
Governor Christie In His FY 2012 Budget Provided $180 Million In Targeted Tax Cuts For Small Businesses In New Jersey To Spur Job Growth And Increase Business Investment And Expansion.
· In January 2012, Governor Christie Signed Legislation Creating The GrowNJ Assistance Program Which Will Provide Over $200 Million In Tax Incentives To Encourage Business Investment And Expansion In New Jersey.
Governor Christie’s Sweeping Bipartisan Pension And Benefits Reform Will Save New Jersey Taxpayers $120 Billion Over The Next 30 Years. (Governor Chris Christie, “Governor Christie Signs Into Law Bold, Bipartisan Pension and Health Benefits Reform,” Press Release, 6/28/11)
· Pension And Benefits Reform Will Save New Jersey’s Property Taxpayers And Local Governments $267 Million In Fiscal Year 2012 Alone. (“Governor Chris Christie's Landmark Pension Reforms Deliver $267 Million in Property Tax Relief to New Jerseyans This Year,” Press Release, 10/5/11)
In His First Six Months In Office, Governor Christie Closed A Combined $13 Billion In Deficits Without Raising Taxes. (“Governor Christie Signs Historic FY2011 Budget Closing $11 Billion Shortfall Without Raising Taxes,” Press Release, 6/29/10)