DiMaio, Wirths propose income tax cuts

Assembly GOP leaders want permanent tax relief, not ‘one-shot gimmicks’

By David Wildstein, from New Jersey Globe

Two top Assembly Republican leaders proposed a plan to cut income taxes for the middle class and the poor as part of a four-point plan to provide tax relief to New Jerseyans.

Assembly Minority Leader John DiMaio (R-Hackettstown) and Assembly Republican Budget Officer Hal Wirths (R-Wantage) want to use the state’s projected budget surplus – estimated at between $6.9 billion and $7.8 billion, to fund tax cuts and not “one-shot gimmicks.”

“Taxpayers can’t wait for relief. The cost of food, gas and goods is going up every day,” DiMaio said. “ Unlike other short-term budget proposals, Assembly Republicans’ comprehensive plan gives people the money in their pockets that they need now and long-term tax reforms that will continue to save them money over time. Tax cuts don’t cost money because this money belongs to the taxpayers.”

The plan outlined today by the GOP Tuesday morning cuts the state income tax for the four lowest tax bracket to account for 22 years of inflation and eliminates the $50,000 tax bracket for joint filers that created a marriage penalty.

DiMaio and Wirths say their proposal would mean a $1,600 tax cut on for married couples who earn $110,000-per year, and $1,000 on single filers earning $70,00 annually.

“Our plan benefits mostly low-wage and middle-class families, because they are the ones most affected by inflation, but everyone will see some kind of relief whether it is through lower property taxes or rebates,” Wirths stated. “When the state is sitting on extra money because of over taxation, you can guarantee the government will spend it. We plan to send it back to the taxpayers.”

Republicans say their proposal go further than a promise by Assembly Speaker Craig Coughlin, a Democrat, of the “largest tax relief program in state history.”

DiMaio said he expected the 34 Republicans in the 80-member State Assembly to vote as a block on the budget.

The GOP leaders said they would look at spending cuts, but declined to identify specific proposals.

But DiMaio said he would back some spending to improve technological infrastructure to improve services at some state agencies, including the Department of Labor.

The legislature must pass the Fiscal Year 2023 State Budget by June 30.