Governor Chris Christie says it's a good day for New Jerseyans because the Democratic leader of the state Senate agrees that residents deserve an income tax break.
Christie says he'll work out the details with Senate President Steve Sweeney during negotiations on a budget for the fiscal year that starts July 1.
The Republican governor has included $183 million in his proposed budget to begin phasing in a 10 percent income tax cut.
Sweeney announced a plan on Tuesday that also would cut income taxes by 10 percent, but would do so as a property tax credit.
Christie dismissed a competing plan laid out by the Assembly as dead on arrival because it includes a millionaires' tax.
Christie has previously vetoed a tax increase on the wealthiest residents.