N.J. Democrats Bring Back Idea Of Millionaires’ Tax To Balance Budget

Republicans, Including Gov. Christie, Circle The Wagons Against Proposal

TRENTON, N.J. (CBSNewYork) –– New Jersey lawmakers are trying to hammer out a budget and avoid a government shutdown.

CBS 2’s Christine Sloan reports that one idea is to get millionaires to pay more taxes, but critics say it could hurt the middle class. They better see eye to eye soon. The budget has to be passed by midnight Thursday.

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As the budget battle continues in the Garden State, Democrats brought up an old idea on Monday, legislation that would tax millionaires even more — from the current 8.97 percent to almost 11 percent.

The money would go to suburban school districts.

“A lot of millionaires out there that can help support the education of young children and it would be great,” said Spencer Raymond of Lodi.

Democrats say a millionaires’ tax would generate more than $600 million for suburban school districts that have seen cuts in aid, but the Chamber of Commerce said it’s a bad idea, putting New Jersey at a disadvantage and hurting middle class workers at companies that could leave the state if the tax burden gets too high.

WCBS 880’s Levon Putney With Reaction From Both Sides

“We don’t want to see a headline anywhere in the country saying New Jersey increases income taxes again to become number one in the country in income tax burden. That is not a good thing when you’re trying to bring jobs and investment into the state,” said Paul Boudreau of the Morris County Chamber of Commerce.

The plan to tax people who make more than $1 million comes after an historic deal between Republican Gov. Chris Christie and Democrats that forces public workers to pay more for their pension and health benefits.  The Senate gave final approval to the bill that would raise pension and health benefit costs to more than 500,000 government workers.  Christie is expected to sign it quickly.

“He’s asked everybody else to step up to the plate to pitch in, share in the sacrifice and today we’re asking those who make over $1 million to do the same,” state Sen. Paul Sarlo said.

“Unfortunately, the Legislature has dragged its heels and here we are with a week to go,” said Republican Sen. Joe Kyrillos of Monmouth County told WCBS 880’s Levon Putney. “They’re spending extra money — perhaps $400 million or $500 million more. And the governor won’t put up with it.”

In Pennsylvania, the top income tax rate is 3.5 percent. It’s 6.5 percent in Connecticut. New York’s millionaires pay 8 percent, but that rate will go down. Christie is against extending New Jersey’s millionaires’ tax. Republicans say Democrats are just fueling the fire.

“For them to go through this ritual, this dance that they’re going to have this additional $600 million, it’s just not there and a false promise to the public once again,” Sen. Kevin O’Toole said.

Christie said he will veto any legislation that will tax millionaires more.

A balanced budget must be in place by July 1, or the state technically runs out of money and government shuts down.

Please offer your thoughts in the comments section below.

More from Christine Sloan
Comments

One Comment

  1. d bonadies says:

    Christie is a nasty self surving bully. Everyone in New Jersey pays the highest taxes, car ins rates etc……and our politicains still can’t balance a budget. This man is has no trouble to take from those of us who are already struggling but not those lining his pocket! Are we gonna stand for this? Is it ok for us to struggle while the rich politians laugh at us? Do they think we are that stupid….there is no such thing as trickle down economics!

    1. DCOnEdge says:

      I truly cannot understand why poor and middle class people vote conservative. Conservatism is a scam. Just last week they cut the pay of 500,000 state workers by making them pay more towards health and pension benefits (after the State has failed to make good on its promise to contribute consistently) and they refuse to increase the tax on people making more than $1 million a year. THEY MAKE MORE THAN ONE MILLION DOLLARS EACH YEAR!!! These people will not even feel the $30k in additional takes they will have to pay!!! When are you isiots going to WAKE UP?!?!?! CONSERVATIVES ARE ONLY INTERESTED IN MAINTAINING THE STATUS QUO – THEY ARE NOT INTERESTED IN ENSURING EVERYBODY PAYS THEIR FAIR SHARE!!! And since they have the money…they have the politicians in their pockets…

  2. Nrichard says:

    So – let me get this straight….Christie says that the state employees must “pay their share” of pension and health benefits based upon their income….BUT his rich buddies – and himself – do not need to pay their share of taxes based on their income…..do you see the disconnect here? ‘You all, are here and must do this – We all are here and will not do that” – Why is the concept of those making more money paying more than those making less such a hard thing to grasp…AND it seems that it is hard to grasp by those making less!!!! Again, wake up people, Christie is not looking out for the middle class/working class – he is looking out for the high rollers only.

    1. DCOnEdge says:

      So true Nrichard. I can’t understand why poor and middle class people vote conservative. Conservatism is a scam. Just last week they cut the pay of 500,000 state workers by making them pay more towards health and pension benefits (after the State has failed to make good on its promise to contribute consistently) and they refuse to increase the tax on people making more than $1 million a year. THEY MAKE MORE THAN ONE MILLION DOLLARS EACH YEAR!!! These people will not even feel the $30k in additional takes they will have to pay!!! When are you isiots going to WAKE UP?!?!?! CONSERVATIVES ARE ONLY INTERESTED IN MAINTAINING THE STATUS QUO – THEY ARE NOT INTERESTED IN ENSURING EVERYBODY PAYS THEIR FAIR SHARE!!! And since they have the money…they have the politicians in their pockets…

  3. LG says:

    Christie says the state won’t have enough revenue for $600 million dollars? Ok, how much revenue will the millionaire’s tax bring in? Not enough?

    You can also have each member of the population pay $.59 a month to the state of NJ in “Budget Tax.” Or less if the millionaire tax comes through.

    There’s your $600 million.

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