New Jersey Spotlight: Income Inequality and Policy in New Jersey

“Some background. The CPBB’s report, “How State Tax Policies Can Stop Increasing Inequality and Start Reducing It,” starts by ranking the various states according the ratio of average income for the top 5 percent of households to the bottom 20 percent, using Census Bureau data. According to this measure, New Jersey ranks seventh most unequal. The report then incorporates analysis from the Institute on Taxation and Economic Policy regarding the incidence or allocation of state-tax burdens by income class to make recommendations as to how states can adopt policies to reduce their income inequalities.”

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