NEW YORK — Taxing the rich has been touted as a convenient way to increase a state's coffers. New Jersey Gov. Phil Murphy said Thursday he had reached a deal with lawmakers to raise taxes on the wealthy as a way to help the middle class and the schools.
He said the new coronavirus crisis had a huge negative impact on the state's economy, and the middle class needs a boost since so many people had lost jobs.
"Now is the time that the wealthiest among us are also called to sacrifice," Murphy said.
The so-called millionaires in New Jersey tax will be a 10.75 percent marginal tax rate starting at $1 million in taxable income. Currently, the tax rate is imposed on income over $5 million. Officials said it would raise $390 million in the next fiscal year.
New York Gov. Andrew Cuomo, who has long resisted entertaining taxing the uber-wealthy, is now saying that it could be part of a way out of the state's economic woes exacerbated by the coronavirus.
The state is facing a $14.5 billion deficit, and hopes of help from the federal government are elusive, The New York Times reported.
Indeed, Cuomo has appealed to congressional leaders for $59 billion to cover a couple years of projected state deficits.
Now, with growing support in Albany for taxing millionaires and billionaires, the governor has started to open the door to the concept, according to NY1. Several senate and assembly Democratic candidates, who are expected to win in November, are in favor of increasing taxes on the wealthy.
The big "if" for Cuomo is, all other revenue-raising scenarios have to be exhausted, most importantly a coronavirus-relief package that bails out states hit hardest by the pandemic.
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