We phased in the income tax cut between 1994 and 1996, a year ahead of schedule, and removed 350,000 low-income earners from the income tax rolls altogether. We recovered every job lost from the previous administration's tax increase and added well over 130,000 more. More New Jerseyans are working than ever before. In fact, New Jersey's unemployment rate is the lowest in nearly a decade. Mr. Chairman, we have proved the critics wrong.
Tax cuts work.
They allow families to keep more of the money they earn. Whether they save, spend, or invest that money, that activity has positive effects on the economy. Furthermore, cutting taxes challenges government to spend more efficiently. And tax cuts send a signal to businesses that government understands their need for a competitive environment. In our case, we followed up on our personal income tax cut with several business tax cuts, including one that gave New Jersey the lowest small business tax in the region.