New Jersey Lawmakers Agree on a Millionaires Tax
New Jersey Governor Phil Murphy and Democratic legislative leaders have agreed on a budget deal that will raise taxes on millionaires to fund rebates for about 800,000 middle-class households.
The deal will push the tax rate to 10.75 percent, from 8.97 percent, for the estimated 35,600 with incomes above $1 million. It also includes a maximum $500 tax rebate for those with at least one child and income below $150,000.
The Murphy budget estimated $390 million in revenue from the higher rate. The rebates will cost roughly $400 million. The revenue, combined with the rebate, signals the state investing in New Jersey’s middle class. The rebates won’t be distributed until after April 15, 2021.
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