At Last! Deal on Millionaires Tax Makes New Jersey’s Tax Code A Lot Fairer

Earlier today, Governor Murphy, Senate President Sweeney, and Assembly Speaker Coughlin announced a deal on the FY 2021 budget. The deal includes the “millionaires tax” — a new tax bracket on annual earnings over $1 million — and provides a $500 rebate to middle-class families with children. In response to the budget deal, New Jersey Policy Perspective (NJPP) releases the following statement. 

Brandon McKoy, President, New Jersey Policy Perspective (NJPP):

“New Jersey’s tax code just got a lot fairer with the budget deal announced by Governor Murphy and legislative leadership. Calling on the state’s wealthiest residents to help fund New Jersey’s pandemic recovery is both smart and just policy, especially now during an economic downturn that has disproportionately harmed low-paid workers and communities of color.

“While many states across the country are balancing their budgets with steep spending cuts, New Jersey’s legislative leaders made the right choice in rejecting austerity measures like those made in response to the Great Recession. This deal recognizes the importance of maintaining state investments that grow our economy and protect New Jersey families harmed during the pandemic.

“There is still much more work to be done. Even with this deal, New Jersey needs more resources to meet its obligations, address future challenges, and advance racial equity and economic justice. We eagerly await details regarding funding for programs and will provide analysis of those decisions when they are made public.”

New Jersey Policy Perspective (NJPP) is a nonpartisan think tank that drives policy change to advance economic, social, and racial justice through evidence-based, independent research, analysis, and advocacy.

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