NJAA Supported Legislation Would Phase Out Estate Tax in Fifteen Months
October 7, 2016
The Assembly and Senate voted on Friday on a tax reform package, which was negotiated between Governor Christie, Senate President Sweeney, and Speaker Prieto. The bill would raise $1.23 billion in revenue immediately through a 23 cent increase in New Jersey's motor fuels tax. This gas tax increase would be offset by cuts to New Jersey's sales tax, a phase out of New Jersey's estate tax, a decrease in taxes on retirement income, and an increase in the Earned Income Tax Credit for low-income families.
With authorized borrowing, this measure would support $2 billion annually in transportation projects. As such, it would create a stable mechanism for ensuring the proper maintenance of our transportation infrastructure. At the same time, it would phase out the Estate Tax, which will help slow the outmigration of both people and wealth from New Jersey to other states, which is splitting families and dampening economic growth in New Jersey. The Senate is currently debating the measure and the Assembly is expected to consider it later today.
NJAA commends the governor and legislative leaders for taking this important step toward making New Jersey's tax climate more competitive with other states and making it easier for New Jerseyans to retire in their home state.