TRENTON – Treasure Andrew Sidamon-Eristoff’s projections in additional income tax revenue are lower than the projections made by the OLS this morning.
The gross income tax revenues for fiscal year 2011 is expected to generate $460 million more in income tax revenue, slightly less than the $633.9 million in additional revenue that the Office of Legislative Services projected. In fiscal year 2012, Sidamon-Eristoff is projecting $604 million more in income tax revenue, for a total of $11.13 billion. That projection is slightly smaller than the $811.7 million in additional income tax revenue projected by OLS.
The total net increase is projected to be $511 million through 2012 – $242 million in the current fiscal year and $269 million in fiscal year 2012 – little more than half of the bump projected by OLS.
Like OLS, the treasurer attributed the higher revenues to wealthy taxpayers.
“The strength in gross income tax revenues appears largely attributable to improved incomes,” he said. “Although we do not, as yet, have detailed information on 2010 incomes, it is likely that much of the gain was in bonus type income in higher income households that are taxed at substantially higher than average rates under our markedly progressive income tax.”
Sidamon-Eristoff also projected corporate business tax projections to be “soft,” with estimates reduced by $213 million for fiscal year 2011, to $2.1 billion.
The Office of Legislative Services said it is projecting $914 million in additional revenue, mostly due to a big increase in income tax revenue.
He did point to some red flags, such as high gas prices, which is hurting consumer purchasing power.