Revenue Proposals for Investing in New Jersey
Here are a few common sense revenue proposals that would help protect services for lower- and middle-income New Jerseyans and to allow us to make needed investments in our state's future.
Adjust state income tax to more closely reflect ability to pay.
Curb business tax breaks and loopholes.
Raise registration fees for gas-guzzlers that pollute our environment.
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Last year a number of Better Choices revenue proposals were adopted in the FY 2010 budget:
Adjusting the state income tax to more closely reflect ability to pay.
The FY 2010 budget increased the tax rate on high incomes. The rate for those making between $400,000 and 500,000 per year is 8%, up from 6.37%; for those making between $500,000 and $1,000,000, the rate is 10.25%, up from 8.97%; and for those making more than $1,000,000 per year, the rate is 10.75% instead of 8.97%. These increases raised an estimated $903 million in new revenue.
Curbing business tax breaks and loopholes.
We called on Trenton to repeal sunsetting provisions for the minimum tax on corporations with gross receipts of $100,000 or more and the 4 % surcharge on corporate business tax liabilities for other corporations. The FY 2010 budget maintained the 4% surcharge on the Corporate Business Tax and the minimum tax on corporations. Extending the 4% surcharge brought in $80 million.
Levying a 5 percent tax on lottery winnings.
New Jersey currently does not tax lottery winnings, while the federal government and 24 states do; we called for a tax on lottery winnings above $600. The FY 2010 budget levied a new tax on lottery winnings over $10,000. This is estimated to have brought in $40 million.
Increasing the alcoholic beverage tax by 10%.
The FY 2010 budget instituted a 25% increase in alcoholic beverage taxes excluding beer. This is estimated to have brought inn $22 million.