Garden State Times

In a recent Budget Committee hearing, Senator Michael Testa (R-1) raised concerns about the Murphy administration's underestimation of a regressive tax increase on employee salaries for paid family leave benefits. Senator Testa revealed that the administration's mistake could lead to a significant financial burden on working families, with a potential tax increase of up to $1,436 for a dual-income household.

Senator Testa highlighted the impact of this error, stating, "This shocking discovery translates to a tax increase as high as $718 on every worker and up to $1,436 for a dual-income household." Additionally, he pointed out that the tax on the 'average wage' would see an increase of $309.

The tax in question is considered one of the most regressive in the state, as it targets wages below a certain threshold while leaving unearned income and higher wages untaxed. This disparity has raised concerns about the fairness and equity of the taxation system in place.

For more detailed information, the breakdown of the tax increase can be accessed online through the Office of Legislative Services (OLS) website. Additionally, a video recording of the full exchange between Senator Testa and Commissioner Asaro-Angelo can be found on YouTube for those interested in further insights into this issue.