The Senate on Monday approved legislation sponsored by Senate President Steve Sweeney (D-Gloucester) to increase the tax credit for the working poor, accepting the governor’s conditional veto to restore and increase the Earned Income Tax Credit. The changes to the bill, S-2918/A-4602, would restore the cut made by the governor five years ago and increase the credit from 20 percent to 30 percent of the federal level. The Senate voted 38 to 1 after the Assembly approved the recommended changes 62-2-4.
“This is a tax cut for those who need it most: the working poor,” said Senator Sweeney. “These are workers who hold one or more jobs but still struggle to support themselves and their families in an economy that has favored the wealthy.”
The governor slashed the EITC five years ago and has refused to accept the repeated attempts by the Democratic Legislature to restore it to 25 percent.
“We are more than happy to increase the level to 30 percent but it doesn’t make up for the cut made by the governor and his repeated refusal over five years to restore it,” said Senator Sweeney. “This is money that would have gone into the pockets of the working poor, helping them make ends meet with money that would have gone into the economy. The governor effectively raised taxes on the working poor while he has refused to have millionaires pay their fair share.”
Senator Sweeney said that an estimated 280,000 low-income, working families in New Jersey qualify for the tax break and that they were denied approximately $250 million over the past five years because of the governor’s actions.
Eligibility ranges from $20,330 for childless workers to $53,267 for a family with three or more children.
The EITC is a refundable federal credit program that is considered one of the most effective anti-poverty tools in America, Senator Sweeney noted. The credit also lessens the burden of payroll taxes such as Social Security and Medicare that disproportionately affect lower income workers.
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Sometimes I wonder why our family works hard. Some of my neighbors are wealthier than me. Free Hud, Free Lunch for their children, free food stamps, EIC credit, Property tax breaks, free healthcare, HEAP, WIC etc… All those add up to quite a substantial amount of money. While the middle class, well, we pay for it and get no help. I don’t consider myself rich by any standards. Just too rich to qualify for Uncle Sam to consider.
If the senator is so concerned about working poor he should pass a bill for school vochers. Tuition is making many people working poor. Even if they make well over $50000.
Great idea give away money you don’t have… oh wait, need mone, just raise the taxes on the few of us that still have jobs, we don’t have our own bills to pay.