Print Page   |   Sign In   |   Register
News & Press: Recent News

N.J. lawmaker wants millionaire's tax in road funding plan

Friday, June 17, 2016   (0 Comments)
Share | 06/17/16

A Democratic state senator has put forward a proposal to pay for eliminating the estate tax with a higher income tax on millionaires. The so-called millionaire's tax, a recurring Democratic proposal, would make up the half million dollars in lost revenue that would accompany the estate tax cut, a centerpiece of a bipartisan plan to replenish the Transportation Trust Fund. Sen. Raymond Lesniak (D-Union) was one of two state senators Thursday to offer alternatives to the leading proposal to raise money for road, bridge and rail projects.

That plan would raise the 14.5-cent tax on gasoline by at least 23 cents a gallon, dump the estate tax, exclude more retirement income from the income tax, raise a tax credit for the working poor, and allow New Jerseyans to deduct charitable donations and their spending on gas taxes against their income taxes. Opponents argue it will blow a hole into the annual budget, which Lesniak proposes to fill with $500 million to $600 million in new tax revenue from taxing income above $1 million at 10.75 percent. The top tax bracket now is 8.97 percent.

A Republican senator, meanwhile, introduced a bill to fund the Transportation Trust Fund with a more straightforward 11-cent-per-gallon increase in motor fuels taxes in 2017, which will increase 2 cents per year. Under Sen. Samuel Thompson's bill, liquified petroleum gas would increase by 5.5 cents in 2017 and then by one cent annually. "The price of gas fluctuates by 2 cents per gallon nearly every day, so a 2 cent increase in the gas tax each year wouldn't even be noticed," Thompson (R-Middlesex) said in a statement. "Let's solve our transportation problem once and for all. Let's do it in a clean way that doesn't link together other issues that shouldn't be part of this discussion."

Sign In

Latest News