ATR Statement on New Jersey Assembly-Passed Tax Reform Plan
Americans for Tax reform is pleased to endorse the tax reform package, A 12, passed by the New Jersey State Assembly on Tuesday.
The reform package is consistent with the Taxpayer Protection Pledge signed by pro-taxpayer legislators.
The tax reform package is not a tax hike; the increase in the gasoline tax of a maximum of 23 cents per gallon is combined with a rollback of the previous one percent sales tax hike such that the sales tax now at 7 percent would be reduced to 6.5 percent on January 1, 2017 and 6 percent on January 1, 2018.
The package also removes the state income tax on pension income over a four-year period for all income below $100,000. That phase in takes place in equal parts over four years.
Taxpayers would have been well served if the gas tax hike was also matched with reforms in the state's prevailing wage law.
The November ballot measure that would require that all gas tax revenue go only to transportation will further protect NJ taxpayers.
The statement can also be read here.