In continuing our effort to highlight states where progressive revenue-raising options are gaining support, this week the attention shifts to New Jersey where the Governor has proposed a budget that wisely relies on revenues from wealthier taxpayers who are most able to afford to pay during these difficult times.
Rather than only slashing services, the Governor has proposed a temporary income tax rate increase on earnings over $500,000, a suspension of the property tax deduction for better-off New Jersey residents, and the extension of a temporary surcharge on corporations. Like many proposals circulating in states across the country, the Governor's budget also includes increases in alcohol and cigarette taxes.
Overall, it's encouraging that yet another state appears ready to acknowledge that taxes on high-income earners are among the least harmful ways to escape current state budgetary nightmares. See past stories from Iowa, Missouri, Alabama, New York, and Wisconsin for more examples.