- According to a new proposal from state legislators in New Jersey, the tax rate on income over $ 1 million would increase from 8.97% to 10.75%.
- Republican leaders across New Jersey came out in retaliation for the so-called millionaire tax.
- A discount of up to $ 500 was also announced for families earning less than $ 150,000 and for single parents earning up to $ 75,000.
- The proposals still need to pass state legislation by October 1, but there is a good chance that this will happen to Democrats who control both chambers of government.
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New Jersey lawmakers reached an agreement on Thursday on a so-called millionaire tax, a proposal to raise taxes on state millionaires.
According to the proposal from the New Jersey government Phil Murphy and other elected officials across the country, the tax rate on income over $ 1
New Jersey state lawmakers also announced a $ 500 rebate for families earning less than $ 150,000 and for single-parent households earning up to $ 75,000. Discount checks will be sent to eligible recipients in the summer of 2021.
The proposals must still pass state legislation by October 1, but there is a good chance that it will happen to Democrats who control both chambers of government.
The millionaire tax comes as part of Murphy’s effort to provide financial relief amid the coronavirus pandemic for nearly 800,000 families in New Jersey, according to a statement from the governor’s office.
New Jersey has received an economic hit due to COVID-19. The New York Times reported on Thursday that more than 1.5 million people in New Jersey have applied for unemployment benefits while more than 16,000 state residents have died.
“In this unprecedented time, when so many middle-class families and others have sacrificed a lot, it is now time to make sure that the richest among us are also called to make a modest sacrifice by paying pennies on the dollar more for any income over 1 million dollars, says Murphy. “I thank the Senate President [Steve Sweeney] and speakers [Craig Coughlin] for their partnership as we move forward with these initiatives that will stimulate resilience and economic growth in our state. “
If signed into law, the new tax rate would be equivalent to that paid by New Jersey residents who earn more than $ 5 million annually. The state’s millionaire tax is expected to generate almost $ 390 million and is part of a nine-month plan of $ 32.4 billion that must be adopted by the state’s capital before October 1.
Republican leaders across New Jersey have come out in retaliation for the millionaire tax, citing that it could damage everyday civilian pocket books.
“Blink and you will miss the next Trenton tax growth,” Doug Steinhardt, NJ GOP chairman, said in a statement on Thursday. “Let’s be clear, these latest tax systems will land in the same place every other Democratic tax system lands: in the pockets of New Jersey’s middle class. At a time when Trenton should exercise restraint and find creative ways to spend less so you can save more, they do. not, can not and will not. “
Taxes for the rich are steadily becoming a topic of discussion across the United States as the presidential election approaches.
An analysis on Monday of the University of Pennsylvania Wharton School of Business budget model showed that households earning less than $ 400,000 will not see their taxes increase while the 0.1% highest can pay another 12.4% under Joe Biden, the Democratic candidate for president .