From Tom Hester Jr. @ NewJerseyNewsroom.com
As many 4.7 million New Jerseyans would see more money in their paychecks because of the proposed 2 percent payroll tax cut. If the legislation is not approved, a typical working family faced a tax increase of over $3,000 on Jan. 1.
At least 321,774 New Jerseyans who have been jobless for an extended period would continue to receive jobless benefits under the legislation. If the package is not approved, the jobless benefits would end in the weeks ahead.
The package also includes an extension of the American Opportunity tax credit, which was used by 281,000 New Jersey families last year to help pay for college tuition.
Additional tax cuts in the legislation that also are geared at middle-class families include the Earned Income Tax Credit, designed to help families to climb out of poverty, and the Child Tax Credit extension, that would make sure families don’t see their taxes jump by up to $1,000 for every child.
“This tax cut plan, while not perfect, will help to grow our economy and create jobs in the private sector,” President Obama said. “It will help to lift up middle class families, who will no longer need to worry about a New Year’s Day tax hike. It will offer emergency relief to help tide folks over until they find another job. And it includes tax cuts to make college more affordable; help parents to provide for their children; and help businesses, large and small, to expand and hire. We worked hard to negotiate an agreement that’s a win for middle-class families, and a win for our economy, and we can’t afford to let it fall victim to delay and defeat. So, I urge Members of Congress to pass these tax cuts as swiftly as possible.”
White House officials described the proposals as responsible, temporary measures designed to support the national economy that will not add costs by the middle of the decade. Obama does not believe it is affordable to make the high-income tax cuts permanent and will continue to make his case for why the administration cannot extend these measures beyond 2012.
The Senate voted 81-19 in favor of the bipartisan tax cut package Wednesday afternoon. It now moves to the House of Representatives for consideration.