N.J. Democrats advance millionaire tax despite promised veto

Democrats in the New Jersey legislature are moving ahead with a measure that would re-impose an income tax surcharge on millionaires. Revenue from the tax would go to suburban school districts.

Senate budget committee chairman Paul Sarlo says Democrats are proceeding even though Governor Christie has vowed to veto any tax increases.

“We’ve heard the rhetoric,” Sarlo said. “He’s asked everybody else to step up to the plate and pitch in, share in the pain, share in the sacrifice, and today we’re asking those who are making over a million dollars to do the same.”

Republican lawmakers say New Jersey residents are already overtaxed, and imposing higher taxes on the wealthy could hurt job creation.

Republican Senator Kevin O’Toole says Republican lawmakers oppose the millionaires’ tax.

“Fundamentally I think some of us would say that we are overtaxed in every respect,” O’Toole said. “Gov. Christie was elected to create jobs and to have a fundamental sense of how we budget and how we spend, and this is a vast deviation from that.”

Sarlo says the surcharge is temporary.

“This is only a two year,” he said. “It’s a two year tax, that’s all this is. It will direct that money back to municipalities to be used for education funding, which is direct property tax relief.”