NJPP study examines effect extended Bush-era tax cuts would have in N.J.

TRENTON  – A new report by N.J. Policy Perspective says that the wealthiest residents in the state would pay about

TRENTON  – A new report by N.J. Policy Perspective says that the wealthiest residents in the state would pay about $71,000 less in taxes under Republicans’ plan to extend Bush-era tax cuts than under President Obama’s approach.

The study, released today, says that if the GOP plan to extend Bush-era tax cuts prevails then taxes for the richest 1 percent in 2013 would be cut by $90,980 on average and by $19,020 on average under Obama’s plan.

However, according to the study by the Institute on Taxation and Economic Policy, the news would be different for lower-income residents.

Under the GOP approach, taxes for the poorest one-fifth of N.J. residents would be cut by about $140 on average, and by $290 on average under Obama’s plan.

Obama’s proposal is to make permanent income tax cuts for the first $250,000 a married couple makes and on the first $200,000 a single person earns.

Republicans, however, want to extend the income tax cuts on all levels of income.

When including all of the tax cuts the president argues for, his approach would cost $1 trillion less than the Republican approach, the NJPP argues.

 

NJPP study examines effect extended Bush-era tax cuts would have in N.J.