TRENTON — New Jersey Gov. Chris Christie said he intends to reduce income taxes within two years to stimulate the economy. A lower tax rate would help the state compete with neighbors including Pennsylvania, which has a top margin of 3 percent compared with New Jersey’s 9 percent, Christie said in a radio interview today on “Bloomberg Surveillance” with...
Lt. Gov. Kim Guadagno and Gov. Chris Christie walk towards the Assembly Chamber as Christie prepares to deliver his March 16 budget address at the Statehouse.TRENTON — New Jersey Gov. Chris Christie said he intends to reduce income taxes within two years to stimulate the economy.
A lower tax rate would help the state compete with neighbors including Pennsylvania, which has a top margin of 3 percent compared with New Jersey’s 9 percent, Christie said in a radio interview today on “Bloomberg Surveillance” with Tom Keene.
“We’ve got to do that,” said Christie, 48, a Republican who took office in January. “You can’t be competitive when your top marginal rate is three times your neighbor.”
The state is still not seeing any measurable improvement in tax collections and needs to assume the “worst-case scenario,” Christie said. New Jersey’s average residential property-tax bill was $7,281 in 2009, the highest in the U.S., according to the state Department of Community Affairs.
Christie’s budget for the year that began July 1 forecast revenue will climb to $28.2 billion from $27.8 billion in fiscal 2010, still well below the peak of $32.6 billion in 2008. Tax collections for the two months ended Aug. 31 were $3.4 billion, 2.5 percent below expectations, according to the state treasury department.
Program Funding
The governor said he plans to continue to reduce state spending, and is trying to “spread it out as evenly as we possibly can.” The Senate plans to vote today to attempt to override Christie’s veto of $7.5 million of funding for women’s health centers.
“There are going to be some worthwhile programs that are cut,” Christie said.
Christie in May vetoed a proposal from Democrats who control the Legislature to extend an income-tax surcharge on residents earning at least $1 million a year.
The governor lowered spending by $10 billion in his first budget as he closed a record deficit of $10.7 billion. The nonpartisan Office of Legislative Services has projected a deficit that may be as high as $10.5 billion next fiscal year, which Christie has said is not an accurate estimate.
The governor also said raising the retirement age, eliminating cost-of-living adjustments and increasing employee contributions are key to reducing the cost of pensions and benefits. He said he anticipates a “real fight” with the unions representing state workers.
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