Derek Roseman, a spokesman for Sweeney, said the governor has "coddled the rich" and the Steindel study is based on flawed politics to justify his agenda. Neither Michael Drewniak nor Kevin Roberts, spokesmen for Christie, immediately returned telephone calls or e-mails seeking comment on Sweeney's statements.

According to Steindel's study, the state's losses from the 2004 millionaire's tax, approved under former Democratic Governor James McGreevey, totaled about 20,000 taxpayers and $2.5 billion in income.

"Is this the only thing on their minds? Certainly not," Steindel said, referring to the effect of taxes. "It does have an effect on the state economy and it does have an effect on peoples' location decisions."

New Jersey's economy was ranked the third-worst performing among U.S. states in the year through June 30, according to the Bloomberg Economic Evaluation of States Index, which uses data on employment, income, real estate, taxes and local stocks.

Credit Ratings

The state's recovery lagged behind the nation, the three major credit-rating companies said when they each lowered New Jersey's bond ranking by one level this year.

New Jersey had the nation's highest state and local tax burden in fiscal 2009, the Washington-based Tax Foundation said in February. Residents paid 12.2 percent of their incomes in state and local levies. New York was next with 12.1 percent.

New Jersey has been "bumping the bottom" during the recovery, as it trails neighboring New York City in job creation since the end of the recession, said Erica Groshen, a vice president at the Federal Reserve Bank of New York. New Jersey's unemployment rate was 9.2 percent in September, while the national rate was 9.1 percent.

While its jobless rate is higher than the U.S. figure, its participation rate -- the proportion of the population that is employed or looking for work -- is 65.9 percent, above the national rate of about 64.2 percent, Groshen said. A higher participation rate indicates a more ready workforce, she said.

New Jersey's economy is poised to recover as officials practice fiscal restraint and fewer people leave the state, said Joel Naroff, president and founder of Naroff Economic Advisors in Holland, Pennsylvania. Reduced government spending in New Jersey will continue for at least two years, he said.