TRENTON – A new report claims the state’s poor and middle class pay a greater share of the state’s taxes than wealthier residents.
The fourth annual Who Pays? A Distributional Analysis of the Tax Systems in All 50 States, states that when combining all of the state’s taxes – income, property, sales and more – it can be seen that the bottom 20 percent of taxpayers bear 11.2 percent of the burden; the middle 20 percent shoulders 9.1 percent; and the top 1 percent deal with 7 percent of the tax load.
The report was compiled by the Washington, D.C.-based Institute on Taxation and Economic Policy.
“The relatively progressive character of New Jersey’s tax structure is endangered by the fiction that New Jersey’s slow recovery from the Great Recession is due to high taxes,” New Jersey Policy Perspective President Gordon MacInnes said in a release.
“The dominant idea among our leaders then becomes that we need to cut taxes, particularly the income tax, and further dismantle state revenues. Instead, we should shift the focus towards making the tax system fairer, while also expanding opportunities for struggling families and investing in the institutions and partnerships that can produce good jobs.”