New Jersey Democratic leaders agreed to increase income taxes on millionaires. This increase has been a long-sought goal of Gov. Phil Murphy.
Top-ranking lawmakers are proposing legislation that would raise the rate to 10.75% from 8.97% for tax filers earning between $1 million and $5 million. People earning more than $5 million already pay that rate. The bill would also create a new annual rebate of as much as $500 for families earning below $150,000.
This income taxes increase on millionaires would bring in additional annual revenue of about $390 million. It has a good chance of being passed by the Democratic-controlled state legislature, and it would apply to the 2020 tax year.
Gov. Murphy remarked at a news conference Thursday that they do not hold grudges at successful people. However he explained that during these hard times of sacrifice for many middle-class families the wealthiest must also take their part of sacrifice.
You can read: NJ high school coronavirus outbreak caused by school party
Republicans oppose the bill. Assembly Republican Leader Jon Bramnick said the income taxes increase on millionaires will push wealthy residents out of the state.
The Governor proposed the income taxes increase on millionaires during his first two years in office but ran into opposition from two fellow Democrats. They were Senate President Steve Sweeney and Assembly Speaker Craig Coughlin.
Income taxes disagreements put aside
Those disagreements were put aside after Mr. Coughlin led the effort to create the $500 rebate. That rebate proposal was enough to bring Mr. Sweeney on board with enacting a millionaires tax.
“It wasn’t a political thing about the governor and me,” Mr. Sweeney said at the news conference Thursday, referring to his prior opposition to raising income taxes. “I had a problem with it at the time, but the pandemic hit and things have changed.”
Noticias Newswire
