TRENTON – The Assembly passed 46-32 bill A4204 that would implement the earned income tax credit.
Assembly Speaker Sheila Oliver spoke passionately about the EITC, saying she has not heard anything from the Republican Party or from various departments in the past 18 months.
“Shame on us that we can put forth an agenda to help the corporate sector,” she said, but there wasn’t enough support to “put an additional 288 dollars in the pockets of poor people in this state.”
The New Jersey Earned Income Tax Credit is a credit for working poor residents who work and have earned income. Oliver pointed out that Ronald Reagan supported the EITC when he was president.
Last year, Republicans changed the EITC from 25 percent to 20 percent. This bill would reverse the change and restore the 25 percent level.
The state tax credit is based on the federal credit. Created in 1975 to ease the burden of payroll taxes for the working poor, the federal earned-income tax credit was expanded by President Reagan, and is designed to help reduce child poverty and increase incentives to work.
“The governor’s tax increase hurt working poor families throughout New Jersey,” said Assemblywoman Joan Quigley (D-Hudson/Bergen). “This change ensures that our tax credit works the way it is supposed to work: helping low-income working individuals earn their way out of poverty and into self sufficiency.”