Local residents who commute to their jobs in New Jersey are facing a double whammy assault on their wallets and pocketbooks starting as soon at Nov. 1.

First, New Jersey Gov. Chris Christie announced that he is killing off a decades-old agreement allowing Pennsylvania and New Jersey residents who work across state lines to pay income taxes where they live instead of where they work.Then, earlier this month, the New Jersey Legislature passed and Christie signed a bill boosting the gasoline tax by 23 cents a gallon, making filling up in the Garden State less lucrative for commuting Pennsylvania motorists.The New Jersey transportation fund was virtually broke and needed money to handle major improvement projects on highways and bridges. The commonwealth has the highest gas tax in the country.With its action, New Jersey’s gasoline tax jumps from second lowest in the nation to sixth highest.The gas tax hike takes effect Nov. 1; the state tax change will be enforced starting Jan. 1.There are an estimated 125,000 Pennsylvanians who work in New Jersey, according to the U.S. Census Bureau. Many live in Monroe and Northampton counties, contiguous to the Delaware River which separates the two states, but there are others making the long commute who live in Carbon, Lehigh and Schuylkill, too.It is impossible to compare differences exactly in an apples-to-apples way. New Jersey’s income tax, whose maximum is 8.97 percent, is graduated and allows numerous deductions, while Pennsylvania’s income tax is a flat 3.07 percent with few deductions allowed.One worker, who lives near Stroudsburg, makes about $95,000 a year and commutes to Morris County, could pay an additional $3,000 between the changes in the tax rate and the gasoline tax increase.Another, who lives near Lehighton and commutes to Hackettstown, with a salary of about $125,000, is facing a possible loss of about $4,100.A former New Jersey state treasurer says that the Garden State could snag $180 million in additional revenues from the income tax change.Under the current reciprocal agreement, a resident of Pennsylvania who works in New Jersey needs only to file a tax return in Pennsylvania. Under the change, the Pennsylvania taxpayer also will need to file a return in New Jersey, seeking a credit for taxes paid there.Republican Christie has had a contentious relationship with the Democratic-controlled Assembly and Senate. He said the action was made necessary by the “Legislature irresponsibly creating a $250 million state budget hole in June.”He said he “will not raise state taxes, cut property tax relief, reduce aid to education or our hospitals, or reduce the state’s record pension payment to cover for this blunder by the Legislature.”Christie said the Legislature had promised to make significant cuts to help balance the state budget. If it makes good on this promise, Christie added, he will reconsider his decision to withdraw from the tax agreement with Pennsylvania.Gov. Tom Wolf’s Press Secretary Jeff Sheridan said Christie has erred significantly to punish unnecessarily the 125,000 Pennsylvanians who work in New Jersey.Sheridan’s statement also said, “This will also hurt our mutual interests in creating jobs and opportunity in the region. Wolf continues to hope that Christie will change his mind and reverse his decision. Unfortunately, it seems that Christie is committed to making Pennsylvania and our residents working in New Jersey suffer the consequences of his failure to enact a responsible budget in a bipartisan way.”Some lower-earning New Jersey residents who work in Pennsylvania also are angry at the governor, because they now pay an effective rate that is lower than 3.07 percent. The change will cost them as much as $1,000 more annually starting Jan. 1.Former Gov. Jim McGreevey, a Democrat, proposed the same kind of legislation a dozen years ago but dropped it and decided to go another route to raise revenue when angry taxpayers rose up in opposition.We believe this action unfairly penalizes Pennsylvania workers because Republican Christie and the Democratic Legislature can’t get their stuff together.It’s mean-spirited, just like the Legislature’s and Christie’s decision in 2011 that required all new public-sector hires to live in the Garden State. This includes teachers, police, firefighters and all local, county and state employees.By Bruce Frassinelli |

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