Revenue Proposals for Investing in New Jersey
Here are a few common sense revenue and savings proposals that would help protect services for working families of New Jersey and to allow us to make needed investments in our state's future. Adopting the proposals below would generate $3 billion in critically needed funding.
Adjust state income tax to more closely reflect ability to pay.
Reinstate the following income tax rates from the FY 2010 Budget. ($1 billion)
- 8% on incomes between $400,001 and $500,000.
- 10.25% on incomes between $500,001 and $1 million.
- 10.75% on incomes above $1 million.
Curb business tax breaks and loopholes.
Extend the surcharge on corporate business tax liabilities into FY 2011 and increase it from 4% to 8%. ($160 million)
Reinstate the throwout rule and regular place of business rule eliminated in 2008, which were used to determine a corporation’s tax liability in New Jersey. ($149 million)
Require combine reporting, which prevents corporations from evading the corporate business tax by transferring profits to certain kinds of subsidiaries. ($100 million)
Suspend BEIP, a tax giveaway to corporations. ($201 million)
Raise registration fees for gas-guzzlers that pollute our environment.
Triple fees on all SUVs and other gas-guzzlers weighing over 5,000 lbs. ($140 million)
- From $84 to $252 for cars less than 2 years old
- 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
Bring gas revenues in line with surrounding states
Option 1: Increase the gas tax from 14.5 cents per gallon to 24.5 cents per gallon. ($450 million)
Option 2: Institute a 7% sales tax on gas. ($900 million)
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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.
Levying a 5 percent tax on lottery winnings.
Increasing the alcoholic beverage tax by 10%.