Delaware Governor Jack Markell recently proposed a one cent increase in the state’s gasoline tax. The state currently levies a 23 cent tax on each gallon of gas—one of the lowest in the Northeast region. Governor Markell...
- Can New Jersey Shed Its Reputation for Nation’s Worst Tax Policy?
Can New Jersey Shed Its Reputation for Nation’s Worst Tax Policy?
Garden States Lawmakers Consider Gov. Christie’s Reform Plan
Washington, D.C., June 12, 2012—After more than a quarter-century of being labeled as one of the worst tax systems in the country, New Jersey legislators are busy considering three conflicting tax reform proposals to ease the burden on their residents. Plans from Gov. Chris Christie, the State Senate, and the General Assembly are being debated ahead of a budget deadline of June 30th, and the plan they choose could have long-ranging impacts for New Jersey taxpayers, according to a new study by the Tax Foundation.
Gov. Christie is pushing for an across-the-board income tax cut of 10 percent on each income bracket while increasing the Earned Income Tax Credit from 20 percent to 25 percent over the next four years.
The plan sponsored by Senate President Stephen Sweeney (D-Gloucester) proposes a homeowner income tax credit of 10 percent on property tax bills up to $10,000, which would be limited to annual incomes of $250,000. Similarly, the General Assembly’s proposal aims to increase the income tax credit to 20 percent while increasing millionaires’ marginal tax rates from 8.97 percent to 10.75 percent.
“Attempts to increase the tax burden on high-income individuals would be damaging to long run growth in New Jersey,” said Tax Foundation economist Scott Drenkard. “Economic research indicates that high progressive tax rates discourage developing job skills and career advancement and reduce the number of hours people are willing to work. Furthermore, taxes on high income filers include business income, and raising taxes on this group would have negative effects on long term economic growth.”
Where New Jersey goes from here will soon be determined, but after decades of suffering from a poor tax code, now is the perfect time for legislators to take action to move the state towards more stable and neutral tax policies.
Tax Foundation Fiscal Fact No. 315, “Lawmakers Weigh Tax Schemes in the Garden State” by Scott Drenkard and Elizabeth L. Malm is available online. More information on New Jersey’s tax climate is available here.
The Tax Foundation is a nonpartisan research organization that has monitored fiscal policy at the federal, state and local levels since 1937. To schedule an interview, please contact Richard Morrison, the Tax Foundation’s Manager of Communications, at 202-464-5102 or email@example.com.
Hearing of the Finance Committee of the North Carolina Senate
June 11, 2013
Chairman Rabon and Chairman Rucho, Members of the Committee:
My name is...
This week, the Finance and Appropriations Committees of the North Carolina House of Representatives approved legislation that would significantly reform the state’s tax system. House Bill 998 would reduce...
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