Greenwald Calls on Christie to Extend Reciprocity Agreement to Avoid Harming South Jersey Residents

Assembly Majority Leader Louis Greenwald on Tuesday urged Gov. Christie to continue the nearly four decade old reciprocity agreement between New Jersey and Pennsylvania, allowing residents who work across the river to pay income taxes where they live. The governor has until Friday, September 2, to provide the legally necessary 120 days’ notice of a termination for calendar year 2017.

“Ending the reciprocity agreement between New Jersey and Pennsylvania would hurt South Jersey residents working in Philadelphia, costing them thousands of dollars a year in new taxes to Pennsylvania,” said Greenwald (D- Camden/Burlington). “Right now our clear mandate as elected officials is to save the taxpayers of New Jersey money in a sustainable way, yet the governor’s continued desire to focus on short-term fixes for our budget hole never ceases to amaze me.”

Earlier this summer the Governor issued an executive order holding back funding for distressed cities and grants for critical programs such as cancer research and women’s shelters, and instructed the state treasurer and attorney general to look into steps that would need to be taken to end the reciprocity agreement. If the agreement is terminated, residents will have to file a tax return in both states.

“Instead of focusing on the real issues at hand, Governor Christie is worried about making a quick buck that will do little for the state at the end of the day. Holding funding hostage for lifesaving research or abuse shelters to buy time isn’t exactly a profile in statesmanship, just as needlessly raising taxes on New Jerseyans can’t solve all budget problems,” added Greenwald.