TRENTON – State Treasurer Andrew Sidamon-Eristoff touted the governor’s income tax cut proposal today as the best plan for lawmakers to adopt over the coming weeks.
Gov. Chris Christie’s proposed 10 percent across-the-board income tax cut would boost the state’s competitive position in the region, Sidamon-Eristoff told the Assembly Budget Committee, echoing similar statements he made Tuesday before Senate lawmakers.
Sidamon-Eristoff went on to say that, unlike tax-cut proposals put forward by the Senate and Assembly Democrats, Christie’s plan would have a clear impact.
“When businesses are considering locating to a state, they are going to do a 50-state survey,” Sidamon-Eristoff said, explaining tax credits are not necessarily on a business’s radar.
“The rate cut is demonstratively better,” he said, referring to tax credits as a “Band-Aid” solution.
“A tax credit at the state level doesn’t do anything to address … property tax,” he said.
Senate Democrats are proposing a 10 percent tax credit on taxable income up to $1,000 for families making up to $250,000. Assembly Democrats’ plan would double the amount of the property tax credit for families making up to $250,000 – but would rely on a millionaire’s tax.
Sidamon-Eristoff also cast doubt on whether the Assembly Democrats’ proposal is even a viable option.
“I’m confused as … to how, mechanically, it will work,” he said.
Assemblyman Declan O’Scanlon, (R-13), Little Silver, invited Sidamon-Eristoff to discuss his opinions on the tax credit/cut proposals during the hearing.