Food isn't the only thing New Jersey Governor Chris Christie will grab at when he sees it on the table. The same goes for income.
Christie said on Friday the state would begin taxing income earned by people who work in New Jersey but live in Pennsylvania.
Pulling out of the nearly 40-year old “reciprocity” agreement will allow New Jersey to raise more revenue starting Jan. 1.
Ther decision will impact 125,000 Pennsylvanians.
Pennsylvanians pay a flat 3.07 percent income tax rate with no personal exemptions. New Jerseyans pay higher rates the more they make, with progressive rates increasing from 1.4 percent to 8.97 percent.
The reciprocal agreement is advantageous for high-income Pennsylvania residents who work in New Jersey, because they pay their state’s lower tax rate. It is also good for low-income New Jerseyans who work across the border because of New Jersey’s progressive tax system.