Gov. Phil Murphy is accumulating quite the progressive record in NJ and can now point to a millionaires tax as another notch in his lapel, alongside able coronavirus management and a $1k baby bonds initiative.
Gov. Philip D. Murphy, a Democrat, announced a deal with legislative leaders to increase state taxes on income over $1 million by nearly 2 percentage points, giving New Jersey one of the highest state tax rates on wealthy people in the country. The agreement also includes an annual rebate of as much as $500 for families making less than $150,000.
“We do not hold any grudge at all against those who have been successful in life,” said Mr. Murphy, a former executive at the investment bank Goldman Sachs. “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 also called to sacrifice.”
Natick native Phil Murphy is doing his home state proud. Unfortunately Charlie Baker and other lawmakers are waiting for the federal cavalry to arrive, and if there’s anything we know about our government under Donald Trump it’s that the cavalry ain’t coming.
The Herald is estimating a $4.4 billion shortfall compounded by a 14% decrease in revenue from this time last year. Not to mention double digit unemployment. In this environment cuts will be born by city and towns which will have to lay-off employees. I was devastated to find out many of our lunch ladies were furloughed and have lost out on their benefits. Not only will my district lose the parity funding we fought hard for in the SOA, but we could even see cuts. Many other places will as well.
A modest millionaires tax could generate nearly $3 billion to offset these cuts and it could be rolled back as economic conditions improved. Already the top 10 billionaires in the commonwealth have gotten richer while the rest of us are crying out for help. This state made them wealthy and is the nice place to live they call home because of a legacy of public investments in education and infrastructure. It’s time to build on that legacy and fund our future.