New Jersey has a new $34 billion budget that’s smaller than the plan approved by the Democratic-controlled Legislature — and devoid of the “millionaires tax” and a surcharge on the corporate business tax.
Gov. Chris Christie used his line-item veto power to eliminate $1.6 billion in spending from the budget.
As expected, Christie rejected the surcharge on the corporate business tax and tax hike on income over a million dollars that Democrats wanted to make a full payment into the public employees pension system.
“If I had the money today to make the full pension payment, I would, ” Christie said. “We don’t, and I’m not going to raise taxes on all the people of New Jersey to benefit 625,000 residents of New Jersey in a system that’s completely broken.”
In a surprise move, Christie’s conditional veto of the millionaires’ tax calls on the Legislature to raise the earned income tax credit.
“A 50 percent tax cut for the working families of New Jersey. This is something that those families need now more than ever,” the governor said. “They need more money in their own pocket and less in the pockets of politicians for them to spend on their special interest friends here in Trenton.”
The left-leaning think tank New Jersey Policy Perspective applauds the governor for restoring the cut in that credit he made in 2010 and hopes lawmakers will go along with it.