NJ: Tax relief could sink NJ into a $1 billion hole as revenue loss grows year after year
New Jersey will be on a course to lose at least $1 billion annually in the coming years if lawmakers give Governor Christie a new state budget that includes either his call for tax relief or theirs.
The competing tax-relief plans that the Republican Christie and Democrats who control the Legislature are pushing now come with a seemingly modest, $183 million price tag on a $32 billion spending plan.
But both the direct income tax cut Christie wants and the new income tax credit for middle-class homeowners that Democrats have countered with call for multiple-year phase-ins, meaning after a few years actual costs will range from more than $1 billion annually to more than $2 billion based on the current proposals.
The loss of that revenue would hit the state budget at the same time tax collections are missing original estimates by as much as $1.4 billion thanks to New Jersey’s slow crawl out of recession.
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http://www.northjersey.com/news/158816185_Analysis_Tax_relief_could_sink_NJ_into_a_1_billion_hole_as_revenue_loss_grows_year_after_year.html?page=all
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