At his State of the State speech in Trenton this afternoon, New Jersey governor Chris Christie introduced a proposal to cut state income tax rates by ten percent across every bracket. After two years spent closing record budget deficits through spending cuts alone, Christie is pivoting to tax cuts and business investment incentives designed to make New Jersey — consistently rated at the bottom for state tax burden and business climate — more competitive.
The tax cuts would be phased in over three years, and combined with the administration’s property tax “toolkit”, which slowed property tax growth to its lowest rate in 20 years, means real relief for New Jerseyans (like yours truly). Christie will also bring back the state’s version of EITC in 2013.
“I also propose to fully restore the earned income tax credit for New Jersey’s working poor, which we were forced to cut during the dark days of 2010, when growth was gone and we had no money,” Christie said. “Understand what this means – every New Jerseyan will get a cut in taxes. … Everyone made the sacrifice. Everyone will share in the benefit.”