New Jersey Democratic Gov. Phil Murphy announced the state is going forward with the Millionaires Tax Thursday morning as the state finalizes the plan.
The tax hike is necessary as the state grapples with an unemployment rate of 13.8% as of July amid the coronavirus pandemic, Murphy said during a press conference.
“We know that over the course of this pandemic and frankly before it began that our middle class needed help and that countless families working hard to achieve their middle class dreams needed an extra push.”
Making an announcement on middle-class tax relief. WATCH: https://t.co/UYJWnrlRFg
— Governor Phil Murphy (@GovMurphy) September 17, 2020
The Millionaires Tax would raise the marginal tax rate from 8.97% to 10.75% on income over $1 million. People making more than $5 million are already taxed at 10.75%. (RELATED: New Jersey Governor’s Plan To Tax Your Second Amendment Rights Into Oblivion)
“We do not hold any grudge at all against those who have been successful in life,” Murphy said. “But in this unprecedented time, when so many middle class families and others have sacrificed so much, now is the time to ensure that the wealthiest among us are called to sacrifice.”
Murphy said while the increase is “modest,” the impact will be anything but, with estimations showing the tax hike will raise approximately $390 million in revenue from 16,491 New Jersey residents and 19.128 nonresidents, according to NewJersey.com.
“Literally, by the way, pennies on their top dollar earned is a modest ask,” he said. Murphy said the money generated would go toward schools, communities and help give a break to property tax payers.
“We will level this playing field for our families,” Murphy said.
The plan will also include a tax rebate of up to $500 for single individuals with at least one child earning up to $75,000 and to families who make up to $150,000. However, not all those eligible would receive the top rebate of $500, Murphy said, noting it would be means-tested.
Some republicans aren’t happy with the plan.
“Blink and you’ll miss the next Trenton tax hike,” said New Jersey GOP Chairman Doug Steinhardt. “That’s how fast Phil Murphy and his Democrats are spending your money. Let’s be clear, these newest tax schemes will land in the same place every other Democratic tax scheme lands: in the pockets of New Jersey’s middle class.”