The proposed bill, known as the Marriage Penalty Elimination Act, aims to revise the gross income tax rates for joint filers and similar taxpayers in New Jersey. The bill addresses the issue of the marriage penalty, which occurs when married couples face a higher tax liability by filing jointly compared to what they would owe if they filed as single individuals. To promote tax equity, the bill amends the tax brackets for joint filers to align them with those for individual filers, thereby reducing the tax burden for most joint filers.

Key changes include establishing a new tax rate structure for taxable years beginning on or after January 1, 2020. Specifically, taxable income up to $40,000 will be taxed at 1.40%, and income over $40,000 but not exceeding $70,000 will be taxed at 1.75%. Additional adjustments are made for higher income brackets, ensuring that the tax rates for joint filers are more favorable. The bill is set to take effect immediately upon passage and will apply to the specified taxable years.