Governor Christie announced today his newest tax plan, a 10 percent property tax credit to be phased in over four years for property owners earning up to $400,000.
Governor Christie is sending a new middle-class tax credit plan to the legislature today that also reinstates cuts he had made to a tax credit for the working poor, he announced on the radio today.
Christie is proposing a 10 percent property tax credit – to be phased in over four years – for homeowners earning up to $400,000. The refunds would be capped at $10,000.
The latest proposal, which comes as the Republican governor is seeking a second term, would also allow the Legislature to suspend the program if lawmakers feel the state cannot afford the program. He made the announcement on Tax Day.
Christie, who originally called for an income tax cut, was close to reaching a compromise with Senate President Stephen Sweeney, D-Gloucester, last year who wanted a property tax credit. But the deal — the same proposal Christie detailed today — fell apart at the last minute after Democrats learned state revenue was lagging behind Christie’s lofty projections.
The tax cut would be retroactive to January, with property owners receiving their first checks a year from today, Christie said during an appearance on NJ 101.5 FM this morning.
Christie latest proposal also changes the state’s earned income tax credit from 20 percent of the federal level, where it’s been since he reduced the program in 2010, back up to 25 percent.
The governor acknowledged that it is an election year – in addition to his seat the entire Legislature is up for grabs – and said Democrats would have to answer to voters if they aren’t willing to address the state’s high taxes.
“I think the people will now know if they’re really serious about cutting taxes or whether they have been deceiving them all along,” he said.
