Gov. Chris Christie at a Trenton area event in June.
Credit: State of NJ
It ended with a signature.
A 40-year-old reciprocal income tax agreement between Pennsylvania and New Jersey is coming to an end following Garden State Gov. Chris Christie’s decision to pull out of the agreement.
Christie’s office on Friday made the announcement that will impact roughly 50,000 Bucks County residents employed in New Jersey. The news will impact thousands more outside of Bucks County who commute across the Delaware River for work.
“I am left with the least painful option I have to fulfill my constitutional duty to balance the budget for New Jersey taxpayers,” Christie said in a statement sent to reporters.
Christie, a Republican and failed presidential candidate, blamed the Democrats that control the legislature in Trenton on having to repeal the reciprocal income tax agreement. The Associated Press reported that Christie told reporters he would reconsider his decision if the legislature can make up money that will be spent because the Democratic-led state house did not deliver on cuts to health insurance for public employees.
“This is the wrong decision for our state. The burden falls completely on working families in New Jersey, especially those in South Jersey who work in Philadelphia,” New Jersey State Senate President Stephen Sweeney, a Democrat, said in a statement to NJ.com.
Under the agreement that was set in place in 1977, Pennsylvania residents who work in New Jersey only file a tax return with Harrisburg and not one with Trenton; the same would go for Garden State residents who work in Pennsylvania. The agreement works out for Pennsylvania residents who pay a lower flat income tax than those who live in New Jersey and pay a progressive income tax.
“We understand Governor Christie has announced his intention to end the PA-NJ tax reciprocity agreement at the end of this year,” State Rep. Steve Santarsiero said. “I will be following up on an invitation from Christie’s staff to meet and I will work with Governor Wolf and my legislative colleagues to explore all opportunities to protect Pennsylvania residents from this dramatic tax increase.”
Republican State Rep. Frank Farry, Democratic State Rep. Tina Davis and Republican congressional candidate Brian Fitzpatrick have all spoken out against Christie ending the agreement.
Both states under the reciprocal income tax agreement can pull out with 120 days notice.
