As part of a $32 billion budget plan, New Jersey Gov. Chris Christie Tuesday called for a 10 percent reduction in the state income tax, a cut that would be phased in over three years.
The governor says the people have spoken and they want lower taxes. His budget proposal calls for phasing in a 10 percent income tax cut over three years.”Lower tax rates will relieve overburdened middle-class families. They’ll keep job creators here,” Chrisite said. “They’ll begin to bring us into a more competitive situation with our neighbors in the region.”The budget plan increases school aid by $213 million. It also includes a $1.1 billion state contribution to the public employee pension plan which would be the largest amount ever.
The budget relies on a projected 7 percent increase in revenue that Christie says allows the state to make the right choices now after two years of sacrifices during the economic downturn.
Tuesday’s budget address was the first time Christie explained how to finance the income tax cut.
Rutgers economist Joe Seneca tells WHYY reporter Emma Jacobs Christie had already set the scene by reining in the state’s spending.
“The highlight being a cap on municipal spending and school spending,” Seneca said.
“Now, he’s trying to translate that further on the revenue side by reducing income tax rates, the one state tax rate that he can control — as opposed to property tax rates, which are a combination of municipal decisions and state decisions.”
You can read Governor Christie’s remarks from Tuesday’s budget address on his official website.