A progressive tax cut

Gov. Jon Corzine plans to do something to help thousands of the state’s poorest taxpayers — that is, if the state’s budget can handle it.

According to an Associated Press report in The Star-Ledger,

New Jersey Gov. Jon S. Corzine may seek to cut income taxes this year for thousands of the state’s poorest families, according to the state treasurer.

Treasurer Bradley Abelow told The Associated Press the Corzine administration will like to revive plans first proposed last year to cut taxes for 614,000 families.

“We were interested and remain interested in doing something to reduce the income tax burden on our very lowest income paying folks,” Abelow said last week.

Last year, the governor wanted to increase by $5,000 the threshold at which families start paying income taxes. Boosting the level from $20,000 to $25,000 would have affected about 414,000 families. He also wanted to cut income tax rates for an additional 200,000 families whose incomes range from $25,000 to $30,000.

But the plans were axed as Corzine grappled with a $4.5 billion projected budget deficit.

Abelow said the plans, estimated to cost $105 million last year, were being considered again. They would help New Jersey avoid taxing families that fall below the poverty line.

The state’s $20,000 level has been unchanged since 1999 when it was $7,500, and is poised to fall below the poverty line for a two-parent family of four this year, according to New Jersey Policy Perspective, a liberal think tank. The group recently noted the federal poverty line for a family of five is $23,400, meaning such families in New Jersey have already paid income tax on their earninut it seems a rather gs.

Of the 42 states with income taxes, 22 have higher thresholds for income taxes than New Jersey, according to the Center on Budget and Policy Priorities. New York’s threshold for a family of four is $28,200; Pennsylvania’s is $32,000.

But there could be complications given that Corzine and Abelow are projecting a gap of about $1.5 billion to $2 billion in the $30 billion budget expected to be unveiled Feb. 27.

While it would be better to include this as part of a larger tax reform package, I’m hopeful Corzine can pull this off. New Jersey’s working poor can use the help.

South Brunswick Post, The Cranbury Press
The Blog of South Brunswick

Email me at grassroots at comcast dot net.
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Author: hankkalet

Hank Kalet is a poet and freelance journalist. He is the economic needs reporter for NJ Spotlight, teaches journalism at Rutgers University and writing at Middlesex County College and Brookdale Community College. He writes a semi-monthly column for the Progressive Populist. He is a lifelong fan of the New York Mets and New York Knicks, drinks too much coffee and attends as many Bruce Springsteen concerts as his meager finances will allow. He lives in South Brunswick with his wife Annie.

2 thoughts on “A progressive tax cut”

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