Senate leader proposes tax to prop up ailing pension fund.
State Senate President Stephen Sweeney proposed a so-called millionaires’ tax to
shore up the state’s trouble pension fund.
To come up with a majority of the $1.6 billion necessary,
Sweeney suggested in March that state lawmakers should hike income taxes on
those who earn more than $1 million annually. For New Jersey small business
owners the proposal is frustrating, as the majority file taxes as pass-through
entities, meaning that while they seem to be millionaires on paper, much of
that is business revenue—not personal income—needed to cover expenses and pay
employees.
“In my mind that means a millionaires tax, it really does,”
Sweeney told NJ Spotlight earlier this month.
The proposal is in its early stages, but could be similar to a
bill that crossed Gov. Chris Christie’s desk last session. That proposal
included a 1.78 percentage point income-tax hike—from 8.97 percent to 10.75
percent—for those earning in excess of $1 million. Christie vetoed the bill.
Question: How would a
proposed “millionaire’s tax” impact your small business? Tell us in the
comments section below.
