>Surplus of N.J. tax revenue may be byproduct of income shifting to avoid federal tax hike
Chris Megerian/Statehouse Bureau
TRENTON — New Jersey tax revenue is outpacing projections by 3.8 percent in the first five months of the fiscal year, the Treasury said yesterday.
However, there are signs that even though residents are earning more, they’re not spending their wages.
The income tax brought in the most money, and delivered revenue 12.7 percent over projections. But sales tax dipped 1.4 percent below projections, a concern for state Treasurer Andrew Sidamon-Eristoff.
“At the risk of sounding overly pessimistic, I’m concerned that sales taxes are down at the same time that income taxes are up,” Sidamon-Eristoff said in a statement. “This may signal that income taxes aren’t rising solely because of an improved economy.”
He said the boost in income tax revenue may be inflated by wealthy residents trying to shift income from 2011 to 2010 to circumvent any potential increase in federal income taxes. For example, some companies have awarded bonuses early
MORE: https://www.nj.com/news/index.ssf/2010/12/surplus_of_nj_tax_revenue_may.html
