Put this in the “salt in the wound” category. Not only would New York state lose out on up to $5 billion over two years if the so-called “millionaire’s tax” is not extended by the end of 2011, but New Jersey would reap about $350 million in 2013 as a result.
That’s revenue New York’s Jersey neighbors could spend on public education and other essential services while the Empire State faces drastic, damaging cuts.
According to media reports, New Jerseyans who commute to our state pay income taxes to New York but get credit for their payments on their New Jersey tax returns, avoiding a double charge. If New York’s top rate drops below New Jersey’s, high-salaried commuters would pay the difference to the Garden State. The memo from the New Jersey Office of Legislative Services reported that New Jersey’s budget lost more than $300 million when New York boosted its tax in 2009.
NYSUT and other education advocates continue to press for an extension of the income tax surcharge on the wealthiest New Yorkers. Meanwhile, here’s an animated look at how New York’s loss would be New Jersey’s gain.