Senate President Stephen M. Sweeney has formally introduced legislation to provide New Jersey’s middle-class senior citizens and retirees with an income tax cut, allowing them to remain in New Jersey amidst the tide of rising property taxes.
Sweeney contrasted his proposal to one previously announced by Governor Christie, who said his goal was to cut income taxes for the highest-paid residents by one-third.
“Instead of simply letting the rich get richer in the hopes it will trickle down, we should be allowing seniors and retirees to keep money in their pockets so they can afford to stay in New Jersey,” said Sweeney. “Allowing them to stay here for the long-term instead of taking their retirement savings elsewhere will benefit our economy far more than another tax break for the rich.”
Under the Sweeney bill (S-2345), seniors whose total earnings fall under $100,000 would be exempt from paying taxes on any income from a pension or deferred compensation plan. The change would put New Jersey on par with Pennsylvania, which is one of only three states (with Illinois and Mississippi) to have a similar retirement income tax exemption.