Governor Chris Christie is walking back his decision to end income tax reciprocity with Pennsylvania, citing health benefit reform savings as the reason for his decision.
He signed S-2749/A-4328 on Monday, legislation that reforms New Jersey state pharmacy benefits system and generating projecting savings of $200 million.
That’s on top of a September move by the State Health Benefits Commission and Plan Design Committee to save State taxpayers over $200 million.
“This action will save State taxpayers hundreds of millions of dollars in health care benefit costs, and I’m proud my administration was again able to work with elected officials from both sides of the aisle and many labor union representatives to achieve these savings,” Governor Christie explained in a statement. “By addressing a potential $250 million budget deficit from growing healthcare costs, we are now able to save an income tax reciprocity agreement with Pennsylvania that protects tens of thousands of hard working New Jerseyans from having to pay more income taxes.”
The move was greeted positively by Republicans and Democrats alike.
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