A Democratically sponsored bill to elminate the state inheritance tax will go to committee Monday, and primary sponsor Paul Sarlo (D-36) is calling it an overture to the governor as both sides come to a compromise on transportation funding.
Democrats have been calling for a gas tax increase to fund the flagging Transportation Trust Fund, which is on its way to insolvency. Without a deal, federal funding would dry up and NJ Transit could find itself $60 million in the red.
“It’s a signal that we are serious about getting the Transportation Trust Fund renewed,” Sarlo said. “It’s a positive signal that we’re serious about having a bipartisan agreement.”
The two bills going to the Senate Budget and Appropriations Committee would cut taxes on retirement income and New Jersey’s estate tax on inherited assets.
“On a bipartisan basis, we have been working to bring needed financial capital back to New Jersey to help improve our competitive economic position,” said co-sponsor Steve Oroho (D-24). “By instituting these latest tax reforms, we will enable more New Jerseyans and businesses to remain in New Jersey, as well as attract new ones, which enhances our revenue stream with an added benefit of keeping families together.”
The estate tax bill would phase the tax out over five years. The retirement bill would increase tax breaks on retirement income from $10,000 for married people filing separately, $15,000 for a single taxpayer, and $20,000 for a married couple to $50,000, $75,000 and $100,000 repesctively over three years.
Christie had called for “realistic proposals and for a legitimate discussion on tax fairness, not just tax hikes” in his budget address.