file photo by Boyd Loving
Phil Murphy Governor-elect wants to raise $1.3 billion for state spending
November 10, 2017
the staff of the Ridgewood blog
Ridgewood NJ, A New Jersey millionaire’s tax boost will be Democrats’ top priority highest-ranking state lawmaker Senate President Steve Sweeney.Governor-elect Phil Murphy, has vowed to enact the increase. With that revenue, plus higher corporate taxes and fees from plans to legalize marijuana sales, the strapped state budget will gain $1.3 billion, Murphy has said.
The top 1 percent of earners in New Jersey about 17,000 residents provide about 40 percent of the state’s income-tax revenue, according to the New Jersey taxation division. The provision previously vetoed by Christie would have increased the tax rate on income above $1 million from 8.97 percent to 10.75 percent. That would raise approximately $615 million in annual revenue, according to the state office of legislative services.
If the increase were passed, high earners might face a second dose of pain from Washington: The tax bill under consideration in the U.S. House would eliminate an existing provision that allows for deducting state tax payments from federal taxes.
Murphy, 60, promised to reduce the nation’s highest property taxes and make full payments to the least-funded U.S. pension system ,create a sanctuary state and to bolster the middle class with more spending on education and health care.
New Jersey has led nation for the largest number of residents leaving for lower-cost places to live. Among them were Omega Advisors Inc. chairman Leon Cooperman and Appaloosa Management LP founder David Tepper, billionaires who moved to Florida. The state’s highest in the nation taxes and anti -business regulations have often been cited as the reason for its slow recovery from the national recession.