N.J. Dems plan to pass millionaries tax, despite Christie's veto threats

Pols say tax increase on highest earners could bring in enough money to pay for $55.5 million in drug benefits, $563.2 million in property tax rebates for seniors

Photos by Tony Kurdzuk/The Star-LedgerN.J. Gov. Chris Christie and Senate President Stephen Sweeney (D-Gloucester)
TRENTON — State Democrats today plan on passing bills to increase taxes on millionaires to pay for rebates and prescription drug benefits for seniors and the disabled -- even as Gov. Chris Christie promises to veto any tax increase before the ink dries.

Democrats said the tax increase on the highest earners will bring in enough money -- $637 million -- to pay for $55.5 million in drug benefits and $563.2 million in property tax rebates for seniors and the disabled.

Christie has said the plan to tax the rich is a "cute idea" but the "math doesn't work." The state is still unclear on the success of a one-year increase on the income tax paid by New Jersey's highest earners. Income tax collections were off by $557.7 million in April -- but residents in 12 of the state's 21 counties received extensions because of flooding. In April, officials were uncertain whether they were in the clear.

On Wednesday, Christie yanked some ammunition out of the Democrats' pockets by giving back some of prescription drug benefit cuts he had proposed in a $29.3 billion budget presented in March. The Republican governor said his administration would pay for the restoration of cuts through higher-than-anticipated savings in President Obama's health care reform package and an increase in the use of generic drugs over brand-name drugs.

Seniors and the disabled were the group of taxpayers many top state Democrats had identified as their highest priority in budget talks.

Previous coverage:

• Treasurer unsure if $567M revenue shortfall is caused by extended tax deadlines

• Gov. Christie reverses his senior prescription drug funding cuts

• Seniors in prescription drug programs to pay more due to budget cuts

• Gov. Chris Christie proposes sacrifices to close $10.7B deficit

• Democrats, Gov. Christie propose dueling tax plans

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

• Complete coverage of the 2010 New Jersey State Budget