According to estimates released today by the nonpartisan Office of Legislative Services, Chris Christie’s budget will mean higher taxes for middle class families in New Jersey, but a massive tax cut for those making over $1 million.
Families making $200,000 per year or less should expect a tax hike. Christie’s budget will raise taxes by more than $1,000 on families making $75,000 per year or less. Meanwhile, the New Jersey’s wealthiest families can expect a generous tax cut. A family of four with an annual income of $500,000 will see $1,500 in savings. A family making $1.2 million in 2010 will see a tax cut of over $11,000.
Christie’s cuts to homestead rebates and earned income credit directly increase taxes on middle class New Jersey families, and his refusal to consider renewing the millionaire’s tax will substantially reduce the tax burdens of rich families who aren’t exactly struggling in economic downturn. His tax policies will shift much the burden of paying for state and local government away from the rich and onto the middle class and the poor:
A family of four making $40,000 to $75,000 or less will pay 12% of their income to state and local taxes, up from 10% or less. These families will pay a greater percentage of their income in state and local taxes than wealthy families will.
Senate Majority Leader Steve Sweeney rightly slammed the Governor for his misplaced priorities:
The Governor keeps talking about a budget based on the concept of “shared sacrifice”. But this analysis proves what Democrats have been saying throughout this process: The sacrifices in this budget are being made solely by the families who can least afford them.
Sweeney and other Democratic leaders have correctly taken a stand against Christie’s proposed tax cuts for the wealthy. Democrats must make it clear that they will not approve a budget that raises taxes on middle class families struggling to cope in a difficult economy while cutting taxes by more $10,000 for the rich.