Democratic Lawmakers Push For Tax Hike On NJ Millionaires

TRENTON, N.J. (CBSNewYork) — In a state with 8.8 million residents and a growing number of fiscal challenges, a small but valuable segment of the population – 16,000 millionaires – is at the heart of the latest budget battle, Jay Dow reports.

Democrats who control the state legislature argue that hiking taxes on the Garden State’s wealthiest from 8.97 to almost 11-percent would generate more than $500 billion for suburban school districts. Those districts, along with New Jersey’s public workers, have experienced budget cuts during Governor Chris Christie’s time in Trenton.

“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.

WCBS 880’s Paul Murnane With Reaction From Tenafly

“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,” said Democrat State Sen. Paul Sarlo.

The proposed increase would put New Jersey at the top of the list in our region. New York’s millionaires pay an 8-percent income tax rate. That rate is 6.5-percent in Connecticut and 3.5-percent in Pennsylvania.

Governor Christie said he will veto the measure if it gets to his desk, and argued that tax increases will make New Jersey even less competitive in the regions, and hurt job growth.

He vetoed a similar proposal back on May 20, 2010.

Critics argue the proposed two-year surcharge will discourage wealthy business owners from hiring workers.

“That is not a good thing when you’re trying to bring jobs and investment into the state,” said Paul Boudreau, Morris County Chamber Of Commerce.

Should New Jersey raise taxes? Sound off in our comments section below…

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Comments

One Comment

  1. miked says:

    I HAVE AN IDEA HOW ABOUT THE DUMB ASS DEMS DONATE ALL THERE MONEY AND JUST WORK FOR FREE THEY DAMN SURE DONT DESERVE TO BE PAID ANYWAY,AND WHILE YOUR AT IT DRAIN THE COMANDORE AND THIEFS

  2. Mike says:

    Never ends…..everyone else should pay.
    Mom taught me that if you didn’t earn it, it’s not yours.

  3. Penny says:

    I am far from being a millionaire. But these people earned their fortune; they deserve to keep it.

    It isn’t their responsibility to pay for your children education.

    It isn’t their responsibility to pay for your families medical care.

    It isn’t their responsibility to pay for your mortgage.
    I can go on and on…

    Let them move out of NJ., I would. You will only be left with a miserable failure for a State. A utopia of socialists (or in other words Underachievers) that are killing the American Dream. You must ask yourself everyday.. How much personal responsibility can I pass off to the Federal Government? Why don’t you fly the flag of the former USSR on your bumper? You people are traitors to America.

  4. Realist says:

    James,

    They are already paying more taxes (both in dollars and in percentage) than any other group, both on the state and federal level. They are “sacrificing” as you put it.

    NJ tax rates:
    If your income range is between $0 and $20,000, your tax rate on every dollar of income earned is 1.4%.
    If your income range is between $20,001 and $35,000, your tax rate on every dollar of income earned is 1.75%.
    If your income range is between $35,001 and $40,000, your tax rate on every dollar of income earned is 3.5%.
    If your income range is between $40,001 and $75,000, your tax rate on every dollar of income earned is 5.525%.
    If your income range is between $75,001 and $500,000, your tax rate on every dollar of income earned is 6.37%.
    If your income range is $500,001 and over, your tax rate on every dollar of income earned is 8.97%.

    Federal tax rates:
    If your income range is between $0 and $8,500, your tax rate on every dollar of income earned is 10%.
    If your income range is between $8,501 and $34,500, your tax rate on every dollar of income earned is 15%.
    If your income range is between $34,501 and $83,600, your tax rate on every dollar of income earned is 25%.
    If your income range is between $83,601 and $174,400, your tax rate on every dollar of income earned is 28%.
    If your income range is between $174,401 and $379,150, your tax rate on every dollar of income earned is 33%.
    If your income range is $379,151 and over, your tax rate on every dollar of income earned is 35%.

  5. James says:

    Let them move, all states should raise taxes on millionaires. If they refuse to share the pain then they will have no where to go except moving out of the country, it’s called shared sacrifice if they don’t like it then leave. No exceptions especially from the one’s who can afford to pay more !!!!!!!!!!

  6. Larry says:

    It would not be a good move for New Jersey if that is how they handle it. Unlike raising Federal taxes on millionaires, which is fair across the board, if a state does it and becomes uncompetitive, as NJ would by becoming the highest taxed state by several points in the region, it encourages wealthy people to move. However, it is also fair to say that Governor Christie has asked everyone else to share the pain with his cuts and so far the cuts have not touched the wealthy as they do nearly everyone else. Possibly a temporary tax hike with some carefully crafted offsetting tax cuts to business could encourage those wealthy individuals that are also business owners that they will not have to pay extra taxes if they invest in jobs and growth for the state instead of merely taking their profits while those around them struggle in these hard economic times.

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