Garden State Times

Senator Anthony M. Bucco has urged New Jersey lawmakers to take action following the Internal Revenue Service's announcement of changes to federal income tax brackets to counter inflation. Bucco emphasized the importance of addressing tax bracket creep at the state level in New Jersey, as reported by NJ Spotlight.

In a statement, Bucco highlighted the disparity between federal and state tax bracket adjustments, stating, "The action by the IRS to raise the income thresholds for federal tax brackets was a reminder that New Jersey is one of just a few states that doesn’t annually index our tax brackets for inflation." He expressed concern over the potential impact on New Jersey families if state tax brackets are not adjusted to align with inflation.

The call for action comes as Bucco's legislation, S-676, aimed at annually indexing New Jersey’s gross income tax brackets for inflation, remains stalled in Trenton. The Senator warned that failure to address inflation could lead to higher state tax bills and reduced paychecks for residents.

A recent report by Rutgers University’s Center for Women & Work highlighted the ongoing challenges faced by New Jersey families, particularly minority households, due to inflation. The report emphasized the need for measures to alleviate the financial burden on vulnerable groups, echoing Bucco's concerns.

Bucco underlined the significance of providing relief to families and small business owners impacted by inflation, urging his colleagues in the Legislature and the Murphy administration to collaborate on finding a solution. He stressed, "All New Jersey families that are living day to day and paycheck to paycheck deserve relief."

As discussions continue on addressing tax bracket adjustments in New Jersey, Bucco's advocacy for protecting taxpayers from the effects of inflation remains a focal point for legislative action.