New Jersey Governor Christie upends old income tax deal with Pennsylvania

[Eugene]

Source: Reuters

POLITICS | Fri Sep 2, 2016 5:46pm EDT

New Jersey Governor Christie upends old income tax deal with Pennsylvania

By Hilary Russ | NEW YORK

New Jersey Governor Christie said on Friday the state would begin taxing income earned by people who work in New Jersey but live in Pennsylvania, ending a long-standing arrangement with the neighboring state.

Pulling out of the nearly 40-year old "reciprocity" agreement would allow New Jersey to raise more revenue starting Jan. 1.

Christie, a close ally of Republican presidential nominee Donald Trump, said in a statement that he was forced to act because the Democrat-controlled legislature created a $250 million budget hole in June by relying on public employee health insurance cuts they have not yet made.

If lawmakers come back next week and cut health costs, Christie could consider "revising" his termination of the reciprocal tax pact.

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Read more: http://www.reuters.com/article/us-new-jersey-taxation-income-idUSKCN1182OZ

[sharp_stick]

1. That won't go over very well

Hopefully this can be reversed pretty quickly.

[GWC58]

2. Eh gad,

Id hate to see that piece of work as USAG. Cautiously optimistic that will never happen.