A new analysis from Citizens for Tax Justice shows that federal tax cuts increasingly are giving the most money to a relatively small share of taxpayers-the ones who already make far and away the most.

Twenty percent of New Jersey households will get back almost 70 percent of the money coming back into the state from federal tax cuts over 10 years. The 80% of New Jersey households that make less than $133,600 will get 23.2% of the tax cuts.

CTJ's figures cover all tax cuts enacted through May of this year, including the recent extension of tax breaks for dividends and capital gains through 2010.

Over the 1001 to 2010 period, the average tax cut for the best-off one percent in the nation will total $483,300. But in New Jersey it will be even higher. The top one percent in New Jersey-whose average income is $1.376 million this year-will get back on average $571,232 over 10 years.

These figures are important for a number of reasons, one of which is to counter complaints that New Jersey's state income tax takes too much of a share from the state's wealthiest households. Clearly, the amount of money these people are getting back from federal tax cuts makes the state income tax much less of a burden.

Here is how much money New Jerseyans at various income levels save under federal tax cuts as the law stands today:

Another way to look at it is what percentage of the tax cuts go to each income group.

To see more from Washington-based Citizens for Tax Justice, go to www.ctj.org.

TAX REFORM

WORK & WAGES

BUDGET & FISCAL POLICY

TRANSIT ISSUES

ECONOMIC DEVELOPMENT

VOTING & GOVT REFORM

© 2008 New Jersey Policy Perspective