Assembly passes millionaire’s tax bill

The Assembly passed by a vote of 46 – 32, a “millionaire’s tax” bill (A4202) that would tack on a 1.78 percent surtax on individuals earning at least $ 1 million.

Assemblyman John McKeon (D-27) of West Orange defended the bill, saying the 15,000 residents who would be impacted (in a state of 8.7 million residents) would be paying their fair share and be part of the “shared sacrifice” that Gov. Chris Christie frequently espouses.

The income tax rate on residents who earn at least $1 million (previous “millionaire’s taxes” proposed would have raised rates for people making at least $400,000) would raise the rate from 8.97 percent to 10.75 percent.

He dismissed the frequent criticism of Republicans that such a tax would prompt them to move out of state, saying it defies logic.

However, Assemblyman Jay Webber (R-26) of Morris Plains, said passage of this tax could lead to increases in other taxes in the future.

“I urge my colleagues to vote against it.”

Other GOP lawmakers were quick to dismiss it at as a “tax on success,” if not a tax on freedom.

Assemblyman Anthony Bucco Jr. said the bill, if passed, could “reverse the goodwill of the business community.”

Assemblyman John Burzichelli (D-3) of Paulsboro, called the tax “worthwhile,” since it will help benefit education and provide tax relief for senior citizens.

The tax would produce $613 million in additional revenue in the 2012 fiscal year.

Assembly passes millionaire’s tax bill