This browser does not support the Video element.
NJ Dems agree to millionares tax in new budget
New Jersey Governor Phil Murphy and Democratic leaders have announced an agreement to put a Millionaire's Tax in the new state budget.
NEW JERSEY - Billing it as middle-class tax relief, Governor Phil Murphy announced an agreement to give a tax rebate for some people but bringing back a tax on high taxpayers who already carry a high burden of the state's income tax.
New Jersey's Democratic governor said he was proud to announce the restoration of the so-called millionaire's tax.
"Now is the time to ensure that the wealthiest among us are also called to sacrifice," Murphy said.
NJ RANKED WORST FOR THIS TAX BURDEN
The money from the tax increase will be used to pay for a $500 tax rebate for about 800,000 lower- and middle-income families in the state.
This browser does not support the Video element.
Gov. Murphy announces budget details
An added tax on wealthy wage earners in New Jersey will be used to pay for rebates for lower-earning families.
The rebate would go to single people with at least one child and earning up to $75,000 and to families making up to $150,000, Murphy said. It would be means-tested, the governor said, so all those eligible may not receive the top rebate of $500.
The marginal tax rate would rise from 8.97% to 10.75% on income over $1 million.
The agreement comes as part of passing a new state budget that needs to be agreed on by Oct. 1, 2020. Murphy did not want to discuss the rest of the budget plan during a Thursday morning news conference to announce the millionaire's tax.
As for when people would start receiving the rebates, they will have to wait. The checks won't start being mailed out until the summer of 2021.
Murphy, a first-term former Goldman Sachs executive and Obama administration official, campaigned as a self-styled “pro-growth progressive” and vowed to raise taxes on the wealthy.
The Associated Press contributed to this report.