Temporarily raises the gross income tax rate on income exceeding $1,000,000 and restores the State earned income tax credit to 25 percent of the federal credit.
Imposes a one-year fifteen percent Corporation Business Tax surcharge
NJEA supports both S-2263 (Sweeney)/A-3485 (Prieto, Greenwald) and S-2262 (Sweeney)/A-3484 (Burzicelli). These bills are necessary to help New Jersey close a recurring structural deficit and allow the state to meet its obligations to its residents.
S-2263/A-3485 raises the gross income tax rate on taxable income exceeding $1,000,000 to 10.75 percent for a temporary three-year-period and restores the State earned income tax credit to 25 percent of the federal credit. The purpose of this bill is to raise revenue from high-income generating activities while maintaining supplemental income assistance for the working poor. It impacts approximately 16,000 filers.
The bill also increases the State earned income tax credit from 20 percent to 25 percent of the federal earned income tax credit.
This legislation is anticipated to generate roughly $500-$600 million dollars in each of the three years before the tax sunsets.
S-2262/A-3484 would impose a one-year fifteen percent surcharge on Corporation Business Tax liabilities and is expected to raise roughly $390 million.
In each of the last several years New Jersey has experienced revenue shortfalls that have ranged from $300 million to $807 million. When lawmakers have struggled to close these budget gaps they have all too often done so on the backs of public employees and middle class workers. It is time to accept that until New Jersey is able to create jobs and grow its economy, the state will need additional revenue to meet its obligations.
In recent years we have seen severe cuts to important public services -- like health care, education, and child care assistance. This unbalanced, cuts-only approach to the global economic slow-down has meant cutting vital support programs for working families to the bone. Such an approach undermines our shared values like preserving our environment and helping those who are temporarily disabled. And reducing investments that foster a skilled, competitive workforce would jeopardize our economic recovery.
Lawmakers should take a balanced approach of budget cuts AND NEW REVENUE options in these tough economic times. It is important to do everything we can to ensure shared sacrifice and to not balance the state budget on the back of New Jersey’s most vulnerable.
NJEA asks you to vote yes on this package of bills.