Business groups and Republican legislative leaders held a joint news conference Monday to speak out in opposition to a proposal put forth by state Democrats that would increase taxes on New Jersey residents earning more than $1 million in annual income.
New Jersey Chamber of Commerce President Tom Bracken said the proposal, which was introduced by Senate President Steve Sweeney (D-West Deptford) last month, would continue to drive some of the state’s top earners away to more tax-friendly states and would have “long-term negative repercussions” on New Jersey’s businesses.
“It’s an easy to answer to say tax the rich,” Bracken said. “But in the long term, this income tax hike hits much more than high-income earners. It also affects everyone in New Jersey in a very direct way. When we increase taxes, we damage our ability to attract and retain businesses. That erodes the tax base and makes our fiscal problems worse.”
Democrats have repeatedly introduced versions of the measure in years past, only to see them vetoed by Gov. Chris Christie each time. This year’s bill would increase the current tax on those earning over $1 million from 8.97 percent to 10.75 percent for a four-year period, leading to what Democrats say could generate well over $600 million in needed revenues.
An increase in the state’s corporate business tax has also been proposed by Democrats, but specifics regarding the structure of such a hike are still unclear.
“New Jersey already has among the highest taxes and most onerous mandates in the nation,” New Jersey Business & Industry Association President Michele Siekerka said. “In addition to the high income, property, corporate, estate and inheritance taxes, New Jersey businesses also face a slew of mandates, including a higher minimum wage and costs associated with the Affordable Care Act.”
Siekerka said that the consequences of the proposed tax would fall unfairly on the backs of small business owners.
“Make no mistake, a millionaire’s tax is a job killer in the state of New Jersey,” Siekerka said.
Senate Minority Leader Tom Kean (R-Westfield) noted that, despite their seemingly annual reintroduction of the measure, state Democrats know they won’t be able to garner the support of either Christie or their Republican counterparts in the Legislature.
“We will win this fight again,” Kean said.
Assembly Minority Leader Jon Bramnick (R-Westfield) added that a vote in support of the millionaire’s tax is a vote “to send jobs out of the state.”
Though confident in Christie’s position on the proposal, state Sen. Joe Pennacchio (R-Montville) offered a helping hand if needed.
“Gov. Christie, take out that red pen,” Pennacchio said. “If you need, you can borrow mine.”