New Jersey Democrats Propose Raising State income Taxes

Big surprise the Democrats big plan for fixing New Jersey's high taxes is to tax the rich more. Last time I checked the rich already pay more than their fair share. By the way many of the millionaires that will be affected by the new tax are actually small businesses who pay income tax as individuals. (S-Corp)

New Jersey Republican State Committee Chairman Jay Webber Issues Statement On The Democratic Legislative Leaders' Proposal To Raise The State's Income Tax

TRENTON - New Jersey Republican State Committee Chairman Jay Webber today issued the following statement in response to Democratic Legislative leaders’ proposal to raise the state’s income tax.

“There they go again. As if 115 tax increases over the last eight years weren't bad enough, the Democrats want to raise taxes on the most overtaxed people in the nation. We know where their tax increases got us -- job losses, budget deficits, and ever more government spending -- and we are not going back. The Democrats drove this state into the economic ditch, and we're not going to give them the keys to the car again.

"Governor Christie and the Republican Party know that to restore economic growth and prosperity to New Jersey, we need to control government spending, not raise taxes. That's the direction in which New Jersey needs to go."

N.J. Democrats propose tax hike on those making more than $1M
By Statehouse Bureau Staff
Star Ledger
May 10, 2010, 2:13PM

Top Democratic lawmakers today proposed raising taxes on so-called true millionaires -- those making more than $1 million a year -- to pay for restored senior property tax rebates and prescription drug benefits.

Democratic legislators, led during a Statehouse news conference by Senate President Stephen Sweeney (D-Gloucester) and Assembly Speaker Sheila Oliver (D-Essex), said the tax increase would apply to about 16,000 New Jersey residents.

"When the governor talks about shared sacrifice I think we all get it, and we all agree," said Sweeney. "But shared sacrifice means 100 percent of us share in the sacrifice, not 99 percent."

The plan challenged Republican Gov. Chris Christie's pledge against raising taxes in the budget for the fiscal year that starts in July. Christie has argued that a repeat of last year's income tax surcharge -- which affected those with incomes over $400,000 -- would hurt small business owners and slow economic growth.

Christie immediately rejected the Democrats' proposal, accusing them of trying to "pander" to senior citizens with a one-year fix that will harm the state's broader economy. He repeated his vow to veto any tax increase, and characterized the dispute as a "philosophical difference" between himself and foes who want a bigger government.

The governor questioned how lawmakers proposed to raise the same amount of revenue from 16,000 taxpayers that had previously been raised from 63,000 people.

"It's a cute idea, but their math doesn't work," Christie said.

He spoke at a news conference where he introduced a 33-bill package of reforms, including a constitutional amendment capping property tax hikes at 2.5 percent. The only exceptions would be for towns' debt service or if local voters decide to override the cap. Contract awards for public workers like police, firefighters and teachers -- including salaries, health benefits, vacation time and other perks -- also could not increase by more than 2.5 percent a year.

Those changes -- which would require legislative approval -- would truly make a difference for senior citizens who want an affordable state, Christie said.

http://www.nj.com/news/index.ssf/2010/05/nj_democrats_to_propose_tax_hi.html