If New Jersey joined other states in adopting federal EITC income eligibility cutoff limits the amount of money involved would not be great. New Jersey's Earned Income Tax Credit program should have the same eligibility standards as the federal EITC . We need it and we can afford it. Avoid confusion as to who was eligible for which program. Reward work at a level commensurate with the federal program and other state EITCs.
New Jersey is the nation's second most affluent state.
But that status masks a wide difference between a relatively small number of people who are doing fabulously and everyone else - especially the working poor. Phasing in the benefits more rapidly, possibly over two years instead of four . This is the time and place for displaying a high level of generosity. It is the time because New Jersey's economy is booming and the state budget anticipates significant surplus revenue. New Jersey Policy Perspective appreciates the assistance of the Center on Budget and Policy Priorities and the Association for Children of New Jersey in putting together this analysis.