Urgent Action Alert:

Tell Governor Christie and Your State Legislators Not to Raise Taxes on 250,000 Commuters

 

Recently, you may have read or heard about New Jersey Governor Chris Christie’s announcement that he intended to terminate a 40-year old personal income tax reciprocity agreement with Pennsylvania. This agreement - similar to many others involving some 20 states - allows you to pay income taxes where you live, not where you work, and only file one state income tax return every year.  Unfortunately, the cancellation of this agreement eliminates a major talent recruitment and retention tool for businesses in the western half of our state.  In fact, many companies and employees are already considering relocation to avoid this dramatic tax increase.  Nearly 250,000 residents of both states will pay more because of this decision.  Residents will also now be required to file annual income tax returns in both states. You can read more here.

The reason this decision has such a dramatic impact stems from the 40 years of two states’ income tax systems evolving very differently.  Pennsylvania has a 3.07 percent flat income tax, while New Jersey has a highly progressive system that taxes income from 1.4% to as high as 8.9%.  Many Pennsylvania residents will see their taxes increased.  The same is true for as many as 90,000 New Jersey residents in Burlington, Camden and Gloucester Counties who work in Philadelphia, which also sports an additional 3.48% wage tax. 

Governor Christie believes terminating the agreement will raise $180 million in new revenue (tax increases) that will help him balance the state’s budget.  But the agreement also affects employers, who could find it more difficult to retain and attract talent given the increased complexity and burden of working in one state while living in another under very different tax schemes.  New Jersey businesses believe the reciprocity agreement has served our region well and should be maintained.  Pennsylvania officials do not support terminating the agreement.

If you agree, we invite you to communicate your support for the reciprocity agreement to Governor Christie and New Jersey State Legislators via this link. It is crucial that you do so today, as the Governor only has until Friday to reverse this disastrous decision.  It will only take two minutes for you to enter your information and send an email with a letter we’ve already crafted. 

The fact is businesses in New Jersey operate in a highly-regulated environment where lawmaker decisions directly impact their objectives and outcomes. During each election cycle, candidates for local, state, and federal office will establish issue platforms and advocate for policy reform. 

By using this website, voters in New Jersey can research to find out more on where candidates and elected officials stand on issues important to New Jersey employees, industry sectors, and consumers. It is our goal is to provide non-partisan and non-biased information so that you will learn about the issues, use the tools provided to take action, and spread the word by encouraging others to become active. 

Political participation is a cornerstone of American democracy. Your voice, your vote, and your opinion matter.



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