New Jersey Governor to work with Senate for a Tax Cut Compromise
New Jersey Governor Chris Christie said that he would sit down with the leader of the state Senate to work on a compromise regarding income tax cuts. The republican governor said that an Assembly-sponsored tax cut measure would be unacceptable because it contains a provision on imposing additional taxes on millionaires.
The governor said that his plan would slash state income taxes by 10 percent over the next three budget years. This is similar to Democratic Senate President Stephen Sweeney’s proposal to allow homeowners to take 10 percent of their property taxes as credit for their income tax.
The Assembly version would double the credit to 20 percent but it would be supplemented by increasing the tax rate on millionaires from 8.97 percent to 10.75 percent. Governor Christie said that this is not acceptable. He has vetoed previous attempts to increase taxes on 16,000 filers who have more than $1 million in earnings.
The tax cuts are part of the budget planning for the fiscal year that begins on July 1. The plans would be carried over for the next three fiscal years. A balanced budget should be in place before the start of the new fiscal year. Governor Christie proposed a budget of $32.1 billion that includes around $183 million worth of tax cut.