N.J. Assembly, Senate panels approve 'millionaires tax,' Gov. Chris Christie vows to veto it

Committees also approved a parallel bill that would commit revenue from the tax to restoring proposed cuts to senior citizens' programs

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Clik here to view.AMANDA BROWN/THE STAR-LEDGERAssemblyman Louis Greenwald shows paperwork with the Office of Legislative Service tax rate numbers to Assemblyman Samuel D. Thompson during a meeting of the Assembly Appropriations Committee in the Statehouse Annex in Trenton. The committee discussed the increase of the income tax rate on people making over 1 million dollars a year.
TRENTON -- Arguing all New Jersey residents should share the pain of Gov. Chris Christie’s proposed budget cuts, Democratic lawmakers today cleared a measure to increase taxes on the state’s wealthiest residents. The action sets up final votes next week in both houses of the Legislature.

“The biggest problem that we have is that (Christie) is raising taxes on everybody. Everyone but one group that’s about a half percent of the population,” said Senate President Stephen Sweeney (D-Gloucester), the prime sponsor of the bill (S-10) known as the “millionaire’s tax.”

The bill would increase the tax rate on households earning more than $1 million a year. It is projected to raise $637 million from 16,000 millionaires, which Democrats say would benefit about 600,000 seniors and disabled people.

The Assembly and Senate budget and appropriations committees also approved a parallel bill (S-20) that would commit revenue from the tax increase to restoring Christie’s proposed cuts to property tax rebates for seniors and prescription drug programs. Sweeney said under Christie’s budget, seniors would have to pay an average of $2,000 extra from the loss of their rebates and increased co-pays for prescription drugs. A one-year tax hike on households earning more than $400,000 expired at the end of last year.

The move ratchets up the Democrats’ fight with Christie, who yesterday repeated a promise to veto the bill if it reaches his desk and said the wealthy have also sacrificed.

“Millionaires have shared in the sacrifice for quite some time,” said Christie. “These folks paid an enhanced tax that they were promised would be a one-year tax, and they paid more than anybody else did when there was very little sacrifice going on last year because that was an election year, happy-time budget.”

Republicans accused Democrats of political posturing since they will not likely be able to secure the two-thirds majority in both houses of the Legislature required to override the veto.

“It’s really political theater, and beyond that, if they were successful it would be another case of kicking the can down the road,” said Assemblyman Sam Thompson (R-Middlesex).

Sweeney disagreed, saying the Legislature is a co-equal branch of government.

“It’s not political theater,” he said. “We’re moving the legislation. It’s going to his desk. He was elected governor. He was not elected king of the state of New Jersey.”

The bills cleared the Senate committee by a vote of 8-4 strictly along partisan lines. The Assembly panel approved them 8-3, with one abstention by Assemblywoman Dawn Marie Addiego (R-Burlington). The full Senate and Assembly will take up the measures today.

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