Christie Weighs New Jersey, Pennsylvania Taxpayers' Fate

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(Updated 4:00 at p.m.)
TRENTON, N.J. (AP) — The Latest on an income tax reciprocity deal between New Jersey and Pennsylvania
New Jersey Gov. Chris Christie says he is ending a nearly 4-decade-old tax agreement between New Jersey and Pennsylvania, all but ensuring thousands of residents in each state will see their income tax burdens go up.
The Republican governor said Friday that he would reconsider his decision if the Democrat-led Legislature finds $250 million in savings from public worker health benefits.
The agreement allowed residents working in either state to pay taxes at their home state's rate. It was a good deal for wealthier Pennsylvanians who commuted to work in New Jersey but paid their state's lower rate and for lower-income New Jersey residents who benefited from their state's lower rates. Wealthier New Jersey residents working in Pennsylvania aren't likely to see much of a change.
Either governor can pull out of the deal at the start of the year but must give 120 days' notice. The deadline for notice this year was Friday.
(Published at 1:21 p.m.)
TRENTON, N.J. (AP) — Thousands of New Jersey and Pennsylvania residents could see their income tax burdens go up under a proposal Gov. Chris Christie is considering.
The Republican governor ordered his administration in June to evaluate the steps for withdrawing from a tax reciprocity agreement with Pennsylvania that allows residents who work in either state to pay income taxes at their home state's rate.
Under the 1977 agreement either governor can pull out of the deal at the start of the year if he gives 120 days' notice.
Friday marks the 120-day mark for Christie. His office said it had no update on the agreement. If the agreement ends, then workers will have to file in both states.