N.J. Democrats seek credit for business tax cuts introduced in Gov. Christie's budget

Democrats complain Christie vetoed their tax cuts only to pare some of them down, reintroduce them in his own budget proposal

TRENTON — Last week, Democrats complained that Gov. Chris Christie vetoed their business tax cuts, only to pare some of them down and reintroduce them in his own budget proposal a few days later.

On Thursday, they will try to take back credit for them.

Democrats in the Senate and Assembly are putting two tax cut bills up for a vote that are similar to ones they passed earlier this year, but changed to match what Christie proposed. One of the bills would overhaul the corporate tax code so businesses headquartered in-state pay income taxes based only on sales (A3869); the other bill (A3870) would allow small businesses to carry forward up to half of their losses for 20 years.

The bills would be phased in over several years. If enacted, the two tax cuts would cost the state $47 million in revenue in the next fiscal year, and would gradually increase to a $298 million loss in 2016.

Taken together, all the tax cuts in Christie's proposed budget would cost the state $199 million in revenue for the next budget year, and would reach $690 million by 2016.

“There is no good reason businesses have to wait another four months for good news, just so the governor can claim these good ideas as his own,” said Senate President Stephen Sweeney (D-Gloucester). 

The two bills had been introduced in previous legislative sessions, one by Republicans and one with bipartisan support. But they did not make much progress until late last year, when Democrats unveiled a package of bills they said were meant to spur job growth.

The Democrats also plan to attempt to override Christie’s veto of nine other bills in their jobs package, including a film and digital media tax credit; a student loan redemption program for workers in fields with labor shortages; and a program to provide on-the-job training for out of work residents while keeping them on the unemployment rolls.

Previous coverage:

• N.J. businesses praise Christie's proposal for $690M in tax cuts

• Gov. Christie delivers budget address to N.J. Legislature - live coverage

• Gov. Christie's budget to include $200M in business tax cuts

• Gov. Christie pushes tax waiver for N.J. businesses in financial hardship

• Christie vetoes 'irresponsible' Democrat-backed bills to cut taxes, stimulate job growth