The debate over a possible millionaire’s tax continues in Trenton and others are also weighing in. Democratic supporters say the tax is for the greater good and will go toward property tax relief, but opponents fear it will hurt New Jersey’s economy. New Jersey Business and Industry Association (NJBIA) First Vice President David Brogan told NJ Today Senior Correspondent Desiree Taylor that the tax would be on businesses and could hurt revenues if millionaires leave the state.
Brogan said there are a couple reasons why the NJBIA opposes the millionaire’s tax. “First of all, it’s a tax on business. If you’re an LLC, LLP, S Corp or sole proprietorship, you’re paying through the gross income tax, you’re not paying corporate business taxes so this is a direct tax on businesses,” he said. “The second thing is, New Jersey’s already a very top heavy state when it comes to gross income taxes. The top 1 percent of wage earners pays 38 percent of the revenues we receive from income taxes and if one or two or 10 of those people were to leave, it’s a significant impact to our budget. And again I think it sends the wrong message to business.”
Brogan said he’s worried implementing a millionaire’s tax could cost jobs in the state because the people who would be paying the tax are the job creators.
While supporters have said the millionaire’s tax would offer property tax relief to residents who then might put more money into businesses, Brogan said the NJBIA prefers an income tax cut. “We’ve been supportive of the governor’s proposal, which is a 10 percent across the board income tax cut,” he said. “I know that the Senate president has put forth the idea of a property tax cut, which is a noble idea, but in terms of businesses, going back to what I said earlier, it’s the small companies that are paying the brunt of it.”
Brogan said Gov. Chris Christie will not support a proposal with a millionaire’s tax. “The one thing Chris Christie has done is he’s instilled confidence in the business community and when he says he’s going to veto something we know he’s going to do it,” Brogan said.
He said that confidence will benefit the entire state. “Confidence in the government is going to instill confidence in business owners and they’re going to put more money into their businesses, they’re going to hire, they’re going to expand their businesses and at the end of the day that’s going to be the best thing for New Jersey,” Brogan said.