N.J. budget accord, tax cut expected

Leaders from both parties in the New Jersey Legislature are optimistic they will reach a budget agreement that will include tax relief.

Senate Budget Committee Chairman Paul Sarlo expects a compromise on a tax cut will be worked out in budget talks with Gov. Chris Christie.

“I believe at the end of the day we’re going to negotiate a process. You have three competing plans right now. You have the governor’s plan, the Assembly plan, and the Senate plan,” said Sarlo, D-Bergen, “Ultimately, the Democrats will come forward with one plan and we’ll have to negotiate with the governor. It will be incorporated into the budget.”

Senate Republican Leader Tom Kean also anticipates a tax reduction will be part of the new budget.

“Right now, the conversation has been how we start reducing taxes and that’s starting to get bipartisan agreement,” said Kean, R-Union. “We need to have more to go because the Assembly Democrats are still trying to increase taxes on people’s incomes.”

The governor has proposed an income tax cut while Democrats want a property tax credit.