Revenue Proposals for Investing in New Jersey
The Better Choices Budget Campaign unveiled fair, sensible and workable state budget revenue proposals at a Statehouse press conference on June 4. As Trenton bears down on the state’s budget problems, the campaign offered specific revenue initiatives that represent better choices for the state Legislature than the cuts to vital services proposed by Governor Corzine.
Adjust state income tax to more closely reflect ability to pay
Current rates would remain the same except a new tax bracket of 8% would be added for incomes $250,000 to $500,000 (affects 4 % of filers). This income currently taxed at 6.37%.
Potential New Yearly Revenue: $443 million
Motor Vehicle Fees: Raise motor vehicle registration fees for gas-guzzlers
Triple fees on all cars/vans/SUVs weighing over 5,000 lbs, from $84 to $252 for cars less than 2 years old and from $71.50 to $214.50 more than 2 years old. Some examples: Dodge Durango, Jeep Aspen, Land Rover, GMC Yukon, Chevy Suburban, Hummer H2.
Potential New Yearly Revenue: $140 million
Curb business tax breaks and loopholes
Suspend payments in FY 09 for Business Employment Incentive Program (BEIP) and do not provide grants to any new applicants. Under FY 09 proposed budget, BEIP increases by $27 million.
Potential New Yearly Revenue: $179 million
Curb business tax breaks and loopholes
Repeal sunsetting provisions for minimum tax on corporations with gross receipts of $100,000 or more and 4 % surcharge on corporate business tax liabilities for other corporations. They are to expire July 1, 2009.
Potential New Yearly Revenue: $125.5 million (FY 10)
Levy a 5 percent tax on lottery winnings
NJ does not tax lottery winnings; however, the federal government and 24 states do. State rates range from 3.4 percent to 8 percent and usually exempt from taxation winning under $600.
Potential New Yearly Revenue: $75 million
Increase alcoholic beverage tax
Raise tax rate 10% across the board. NJ now taxes liquor at $4.40 per gallon; still wine, vermouth and sparkling wine at 70 cents per gallon; and beer and hard apple ciders at 12 cents per gallon. These rates have been in effect since July 1, 1992.
Potential New Yearly Revenue: $9.3 million
TOTAL NEW YEARLY REVENUE:
$846.3 million FY 09
$971.8 million FY 10