Yep, as of 2021 approx 15% of the state population was employed at the local, state, and federal level. So all the rest of NJ residents would have to work something else out with their employer of all be doing it individually. Unions could probably help get that organized, though.

There’s always some naysayer in these threads with this tired aCkShUaLlY argument, and it is capitulative bullshit.

Giving people a false expectation on what a state government can unilaterally do here doesn't help anyone.

State payrolls are significant, any governor could easily setup an escrow account, divert all state payroll federal taxes to it, and use it for any shortfalls.

Of course. In most states that was under 20% of the population in 2021, and that percentage include federal government employees. So still >80% of the federal tax payments from residents aren't included in that.

They could then create a mechanism within their own state tax system and allow employers to opt in.

Yes, this is quite consistent with what I said about having to get employers to stop withholding tax payments for their employees. The state can provide a mechanism for the >80% of its residents who work in the private sector. And then it's up to all of them to go along with it.

I'm not sure what it is you needed to clarify for me or deride me over. You haven't aCkShUaLlY contradicted anything I said.

That's a great idea for state employees. We are also getting a much larger SALT deduction next year from the One Blows Bubba Bill. Salt cap goes up to $40k. So if New Jersey temporarily increases state income taxes to the level of federal taxes, they could shift the tax revenue away from federal and towards state taxes.