Group argues N.J. income tax rate is lower than New York or Philadelphia and does not hinder business as Governor claims
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Gov. Chris Christie and his wife Mary Pat paid $33,619 in taxes on $540,792 in taxable income. That's 6.2 percent of their New Jersey taxable income, considerably less than one would expect them to pay given their 10.25, according to liberal think tank New Jersey Policy Perspectives.TRENTON — Using Gov. Chris Christie's 2009 income tax filings as an illustration, the liberal think tank New Jersey Policy Perspectives is countering the claims that the state has abnormally high levy rates. While the more than 10 percent tax rate for top earners seems high, the graduated system creates a lower actual tax burden, the report found.
Christie has argued that the top tax rate makes New Jersey less competitive for business and residents than surrounding states. He vetoed legislation in May that would have created an income tax surcharge for those making more than $1 million. But NJPP is arguing that the state's tax structure makes the state income tax actually lower than neighboring New York or Philadelphia.
The report, released today, demonstrates how Christie and his wife Mary Pat paid a total 6.2 percent tax rate on their combined income because of the state's graduated tax rate. While the top brackets levy a more than 10 percent tax, only the portion of income that falls into that margin is taxed at that rate.
"In New Jersey, opponents of progressive taxation like Governor Christie argue that rates are too high," the report states. "But a full understanding of the state's tax structure shows that New Jersey is actually quite competitive."
Christie made his tax returns available to the public in October and posted copies on the state's website. In 2009, the Christies reported $540,792 in taxable income and paid $33,619 in taxes.
"To most, that sounds like a lot of money but to them that's 6.2 percent of their New Jersey taxable income, considerably less than one would expect them to pay given their 10.25 percent tax bracket," the report stated.
That is because only the $40,792 over $500,00 was taxed at a 10.25 percent rate. The rest of their income was taxed at a lower rate.
When comparing the overall rate, with surround states, NJPP found the Christies are paying less than some of their neighbors.
"The 6.2 percent effective income tax the Christie's paid to New Jersey is less than they would have paid to New York State if Mrs. Christie's job were there; less than they would have paid if she had worked in Philadelphia; and about what they would have paid if they had lived in Georgia," the report found.
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