Christie Administration will Work to Cut Estate Tax, he said
The state's impending transportation funding crisis can be solved in the next few months, and the Christie Administration will lead a push for the outright elimination of the New Jersey estate tax during its last two years in office.
These assertions were made by newly appointed Acting State Treasurer Ford M. Scudder, during an address to business leaders March 9 at a breakfast in East Windsor sponsored jointly by the New Jersey Chamber of Commerce and the New Jersey Business & Industry Association.
Transportation Trust Fund
The plain spoken Princeton native, who graduated with a bachelor's degree in economics from Princeton University and a master's degree in business administration from Vanderbilt, wasted little time before addressing an issue on everyone's mind: How will the state generate new revenue to feed the Transportation Trust Fund, which pays for maintaining the state's highways, bridges and mass transportation? The current authorization expires June 30, 2016.
"We have every confidence it will be solved in the coming months and will continue to be funded as it has for decades," Scudder said.
An increase in the gas tax to generate revenue was not mentioned.
When pressed by a member of the audience for details about what a Transportation Trust Fund solution might look like, Scudder added, "All options will be considered, as the governor has said. He would like to see the Assembly come to him with a proposal, and they have not yet."
Death Taxes
The elimination of New Jersey's estate tax, a tax levied on the net value of the estate of a deceased person over $675,000, is "imperative for economic growth" Scudder said, then added that "this administration will lead a push to eliminate the tax outright. The death tax is as un-American as any tax that exists. It breaks up family businesses and forces families to sell homes."
New Jersey is one of only two states that assess both an estate tax and an inheritance tax, which amounts to double taxation on income and savings, Scudder said, noting 31 states have neither tax, giving those states a leg up on attracting and retaining employers.
These taxes "incentivize people to move out of state with their businesses and their jobs. Everyone in New Jersey suffers on account of our death taxes," Scudder said.
The Treasurer said the fight to eliminate the estate tax will require participation by the business community. "If you stay out of the debate, the citizens of New Jersey will lose time and time again."
Scudder indicated that eliminating the estate tax is a political challenge for the governor and the Legislature. "It's a question of how you make the numbers work and how you marshal the votes," he said.
"I come at tax policy purely from a practical standpoint," Scudder added, "to create a positive economic climate. There is nothing like a strong economy to help all the citizens of the state."
For photos from the event, click on an image below:
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