Kyrillos: “Millionaires Tax” hurts the poor and middle class

By Senator Joe Kyrillos

Senator Joe Kyrillos

Senator Joe Kyrillos

Nobody ever felt sorry for a millionaire. At least that’s the principle some Democrats in Trenton are banking on as they resurrect former Gov. Jon Corzine’s “millionaires tax” to close the expected budget gap for fiscal 2015. Proponents of this tax increase promise it will hit only the wealthy, but in fact, poor and middle-class families will ultimately shoulder the burden.

Of course, the term “millionaires tax” is a misnomer. New Jersey already taxes the income of millionaires at one of the highest rates in the nation — higher than 44 other states do. The so-called millionaires tax is just an expired tax increase that raises New Jersey’s top tax rate to about 11 percent, the third-highest in the United States.

Proponents of the millionaires tax imagine that the only reason people could oppose this tax hike is that they’re worried New Jersey’s well-to-do will run low on caviar if it’s passed.

Actually, what we’re worried about is the impact on New Jersey’s working families.

As it turns out, millionaires don’t like paying high taxes any more than the rest of us do. But unlike most of us, they can easily move out of New Jersey to avoid new tax hikes. For many, changing their tax residence is as simple as spending a few more weeks a year at their vacation home in Florida. They can keep a house in New Jersey to spend time with the grandkids, live for six months and one day in the Florida home, and voilà, they are Florida residents who no longer owe a dime in New Jersey taxes. As a bonus, their children will escape paying New Jersey’s highest-in-the-nation estate tax.

It’s little wonder that in 2010, the last year we had the old Corzine millionaires tax on the books, 88,000 individuals left New Jersey, taking with them a total annual income of $5.5 billion.

The millionaires tax could be more aptly named the “Goodbye New Jersey Tax.”

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Posted: June 21st, 2014 | Author: | Filed under: 2017 NJ Gubernatorial Politics, Joe Kyrillos, New Jersey, New Jersey State Budget, NJ State Legislature, Opinion | Tags: , , | 9 Comments »