Democrats have been criticizing Gov. Chris Christie’s proposed income tax cut since he announced it during his State of the State address in January. They said they preferred a tax cut plan that gave property tax relief because it would help more New Jerseyans. Senate Democrats released a plan Tuesday that would use property taxes to reduce the income tax for individuals earning less than $250,000 per year. NJToday Chief Political Correspondent Michael Aron spoke with Managing Editor Mike Schneider about the proposal.
Instead of cutting the income tax by 10 percent across the board like Christie has proposed, the Senate Democrats are proposing an income tax cut for those earning less than $250,000 per year. The cut would be determined by the amount of property taxes the resident pays, Aron explained. If a resident pays $7,500 a year in property taxes, he or she would receive $750 off the state income tax payment. Aron said that the plan would be phased in over four years.
The Assembly Democrats have a plan of their own for tax relief, Aron said. He explained that they want 20 percent of the property tax bill to come off the income tax bill, meaning the resident paying $7,500 a year in property taxes would get $1,500 off the income tax bill. The Assembly plan also includes an income tax hike for millionaires from 8.97 percent to 10.75 percent. Aron said that would be unlikely because “the governor said he’d never go for that.”