In addition to a minimum wage hike, a salary history question ban, and paid sick leave, the latest proposal that could impact small business owners is a proposed ‘millionaire’s tax.’
This measure was a promise from the campaign trail from Gov. Phil Murphy, who pledged to implement the tax in order to increase spending on education, transportation, and public worker pensions in the state. However, the top two lawmakers—Senate President Stephen Sweeney and Assembly Speaker Craig Coughlin—are not keen on the idea, and Gov. Murphy needs their support to pass the bill before he can sign it into law. In the past several years, the Legislature passed a similar measure, but then-Gov. Chris Christie vetoed it each time.
A so-called ‘millionaire’s tax’ would hit small business owners hard. Though the issue is talked about in terms of wealthy households, the tax would be imposed on pass-through entities—which make up the majority of small business owners—who pay their business income at the personal rate.