PolitickerNJ Wire Feed
TRENTON – Legislation sponsored by Senators Shirley K. Turner and Jim Whelan that would strengthen a proven anti-poverty measure and put money back into the pockets of New Jersey’s working poor was approved today by the full Senate.
“As the state fights to implement policies to pull New Jersey out of the recession, it is imperative that we consider the needs of our working poor. Often left forgotten, men and women across the state who are working hard to support their children and families are finding it nearly impossible to make ends meet,” said Senator Turner (D-Mercer/Hunterdon). “The Earned Income Tax Credit has been a lifeline for these families, supplying them with additional funds to help pay for food and rent, to gain more training and education and to improve their family’s lot in life. The Governor’s cuts to these programs were cruel. Now we must do the right thing to restore this funding for hardworking families across the state.”
The bill, S-2535, would restore the Earned Income Tax Credit (EITC) level to 25 percent of the federal credit amount. Governor Christie reduced the credit to 20 percent in his FY2011 budget, but last week, as part of his conditional veto of the minimum wage, proposed increasing the EITC back to the limits prior to his cuts. This measure would provide that increase one year ahead of the Governor’s proposed restoration. Senators Turner and Whelan note that an increase in the EITC should not be tied to accepting a minimum wage deal that does not provide real relief to New Jersey’s working families.
Additionally, the Senators note that last year, Governor Christie attempted to tie an increase in the EITC to accepting his across the board income tax cut – a measure that would have disproportionally benefitted the wealthy over New Jersey’s middle and working classes. The Legislature approved a bill that would restore the EITC levels to 25 percent last June. The measure was absolute vetoed by the Governor.
“The Earned Income Tax Credit is one of the most effective ways to pull hardworking families out of a life of poverty. By restoring the EITC to its full level in New Jersey, we can help working families to reduce their tax liability and provide them with extra income. In turn, they will spend that income, putting money back into our economy and strengthening our economic engine,” said Senator Whelan (D-Atlantic). “Governor Christie has stated that he hopes to restore the credit to its previous amount to provide sound economic footing for New Jersey’s working poor. With this legislation and his support, we can provide a lift to struggling families during these challenging economic times.”
The earned income tax credit is a refundable federal credit program that lessens the burden of payroll taxes such as Social Security and Medicare that disproportionately affect lower income workers. The federal EITC lifted 6.6 million Americans – including 3.3 million children – out of poverty in 2010. In 2012, more than half a million New Jerseyans benefited from the program, which – according to the Washington, DC-based Center for Budget and Policy Priorities – is the nation’s most effective antipoverty program for working families.
Since the program’s enactment in 1975, 25 states plus the District of Columbia supplement the program with their own state-based EITC program. In New Jersey, the credit is calculated as a percentage of the federal EITC, which is adjusted yearly based on inflation. Credit amounts are distributed based on income and family size. For example, a single parent with two children would have had to make less than $41,952 in 2012 to be eligible for the credit. In 2008, 87 percent of those receiving the EITC made less than $30,000.
According to the Center for Budget and Policy Priorities, there is extensive evidence that the EITC encourages individuals to obtain jobs and remain employed. Supporters of New Jersey’s EITC attribute the program to a significant increase in labor force participation among New Jersey workers and a method of supplementing the incomes of low-income working families, stabilizing the economic outlook as they move up the career ladder and better ensuring they remain independent from public assistance. President Ronald Reagan called the program “the best anti-poverty, the best pro-family, and the best job-creation measure to come out of Congress.”
The bill was approved with a vote of 27-1. It now heads to the General Assembly for further review.
NJ Senate Democratic Office
As a Morris County Freeholder, the late Joan Bramhall established the Morris County Library Foundation.Read More >
Fight of the Week: Donovan v. Pascrell Fight of the Week Bergen County Executive Kathe Donovan v. U.S. Rep. Bill Pascrell (D-9) (Pizarro/PolitickerNJ) http://www.politickernj.com/79736/fight-week-donovan-v-pascrell Paramus mayor's race: Candidates in closely-divided Bergen borough spar over taxes, towing issues PARAMUS - When voters go to the polls in November...
By MICHAEL W. KLEIN In his weekly radio address on August 16, President Obama challenged colleges “to do their part to bring down costs” and lighten the tuition burden on students. The state colleges and universities in New Jersey have... Read More >
"But things get touchy between LaBarbiera and LoCicero when it comes to taxes, the bete noire of politics in the statewide election bellwether, Bergen County."- PolitickerNJ
Press releases are submitted by PolitickerNJ users, not by staff. They do not represent the viewpoint of PolitickerNJ.com.