New Jersey Democrats Seek Millionaire Tax Surcharge
By Terrence Dopp
May 10 (Bloomberg) -- New Jerseyâs Democratic lawmakers plan to introduce legislation to place an income-tax surcharge on residents who earn $1 million a year or more, according to two Democrats who were briefed on the proposal.
The plan would raise $650 million for the fiscal year that begins July 1, said the people, who declined to be identified ahead of an 11:30 a.m. press conference. About 16,000 filers would pay the higher tax, the people said.
Senate President Stephen Sweeney, Assembly Speaker Sheila Oliver and members of the Senate and Assembly Democratic leadership plan to make a âmajor announcement on the proposed state budget,â according to a press advisory. Sweeney did not immediately return a telephone call. Oliver declined to comment before the press conference.
Governor Chris Christie, a Republican who took office Jan. 19, proposed a $29.3 billion budget in March that would suspend property-tax rebates, skip the stateâs $3 billion pension contribution and reduce aid to schools and towns by more than $1.2 billion. He has pledged not to raise income, sales or corporate taxes to close a record $10.7 billion deficit.
Former Governor Jon Corzine, the one-term Democrat defeated by Christie last year, enacted a one-year surcharge on filers reporting taxable income of $400,000 or more. That levy expired Dec. 31.
Press Conferences
Democrats, who control both houses of the Legislature, want to use the money raised from a surcharge to eliminate Christieâs proposal to charge seniors a $310 deductible for low-cost prescription drug plans and to reinstate property-tax rebates for seniors, the people said.
Sweeney has said he would not approve the governorâs budget unless it contained the tax surcharge on New Jerseyâs highest earners. Christie has refused.
Christie plans to propose a 2.5 percent cap on property-tax increases and a separate 2.5 percent limit on public worker raises as part of a 33-bill package he will unveil at noon today, said his spokesman, Michael Drewniak.
Drewniak said the Democratsâ $650 million revenue target is âsuspectâ given the economy and a tax on high-wage earners in New York that may offset collections for financial-sector workers. âThis is just more of the same thing that brought us to the financial state we are in,â Drewniak said in an interview. âWhen will they learn that New Jersey doesnât have a revenue problem, it has a spending problem. This is a job killer.â
To contact the reporter on this story: Terrence Dopp in Trenton at tdopp@bloomberg.net
Last Updated: May 10, 2010 10:50 EDT
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aEColQPqXjSo
By Terrence Dopp
May 10 (Bloomberg) -- New Jerseyâs Democratic lawmakers plan to introduce legislation to place an income-tax surcharge on residents who earn $1 million a year or more, according to two Democrats who were briefed on the proposal.
The plan would raise $650 million for the fiscal year that begins July 1, said the people, who declined to be identified ahead of an 11:30 a.m. press conference. About 16,000 filers would pay the higher tax, the people said.
Senate President Stephen Sweeney, Assembly Speaker Sheila Oliver and members of the Senate and Assembly Democratic leadership plan to make a âmajor announcement on the proposed state budget,â according to a press advisory. Sweeney did not immediately return a telephone call. Oliver declined to comment before the press conference.
Governor Chris Christie, a Republican who took office Jan. 19, proposed a $29.3 billion budget in March that would suspend property-tax rebates, skip the stateâs $3 billion pension contribution and reduce aid to schools and towns by more than $1.2 billion. He has pledged not to raise income, sales or corporate taxes to close a record $10.7 billion deficit.
Former Governor Jon Corzine, the one-term Democrat defeated by Christie last year, enacted a one-year surcharge on filers reporting taxable income of $400,000 or more. That levy expired Dec. 31.
Press Conferences
Democrats, who control both houses of the Legislature, want to use the money raised from a surcharge to eliminate Christieâs proposal to charge seniors a $310 deductible for low-cost prescription drug plans and to reinstate property-tax rebates for seniors, the people said.
Sweeney has said he would not approve the governorâs budget unless it contained the tax surcharge on New Jerseyâs highest earners. Christie has refused.
Christie plans to propose a 2.5 percent cap on property-tax increases and a separate 2.5 percent limit on public worker raises as part of a 33-bill package he will unveil at noon today, said his spokesman, Michael Drewniak.
Drewniak said the Democratsâ $650 million revenue target is âsuspectâ given the economy and a tax on high-wage earners in New York that may offset collections for financial-sector workers. âThis is just more of the same thing that brought us to the financial state we are in,â Drewniak said in an interview. âWhen will they learn that New Jersey doesnât have a revenue problem, it has a spending problem. This is a job killer.â
To contact the reporter on this story: Terrence Dopp in Trenton at tdopp@bloomberg.net
Last Updated: May 10, 2010 10:50 EDT
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aEColQPqXjSo
