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The Law Was Working Fine, Which Is Why It Had To Go
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New Jersey has given a lot of companies tax credits and breaks to move into the state, but Governor Christie just screwed them big time. See, for a long time, Pennsylvania and New Jersey had a reciprocal income tax arrangement: A worker could live in one state, work in the other, and just pay his or her own state income tax. This worked for almost 40 years and was a major attraction for companies moving to South Jersey: It meant an easier time attracting good employees because they could live wherever in the area they wanted. But the Governor, facing a budget gap, has eliminated that reciprocity, and now several major companies -- including Subaru -- building large projects with lots of jobs are saying that they did so in large part because of that employment flexibility, and without the reciprocity, they might just pull the plug on those projects. And you can't blame them. I used to be one of those two-staters, living in PA and working in NJ, and if I had to pay income tax to New Jersey at New Jersey rates, I might have quit. So much for a Republican governor reining in taxes. (Philadelphia Inquirer)
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