Earlier today, it was reported that Senate President Steve Sweeney will support raising the income tax on earnings over $1 million in exchange for a larger payment into the state’s pension fund. This follows a call from the For The Many coalition for a state budget that prioritizes ordinary people over corporate special interests. In response to this proposal, New Jersey Policy Perspective releases the following statement.
Brandon McKoy, President, NJPP:
“Reinstating the millionaires tax is smart public policy that will improve New Jersey’s finances and make the economy stronger for everyone. New Jersey’s public pension system is underfunded not because the benefits are too generous, but because the state habitually skipped annual payments so it could protect tax breaks given to ultra-wealthy families and large corporations. Undoing those short-sighted decisions and improving our ability to responsibly afford our obligations is a welcomed change, and we thank Governor Murphy and Senate President Sweeney for their leadership on this front.
“A decade of state tax cuts for the wealthy, combined with recent changes in the federal tax code by President Trump, have weakened New Jersey’s ability to invest in our communities and created barriers to opportunity for millions of residents. New Jersey continues to be a state that attracts and generates wealthy individuals due to our location and critical assets. Ensuring that they pay their fair share so we can fully leverage the benefits of our location is both the fiscally responsible and morally right thing to do.
“As New Jersey continues to improve its fiscal standing, reversing the damaging tax cuts of the past is paramount so we can truly invest in our communities.”
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