The Christie administration is responding to Democrats’ efforts to raise taxes on New Jersey’s wealthiest residents with new information that higher taxes will cause the state’s top-earners to move.
Democrats, who control the Legislature, are considering another attempt to impose an income tax surcharge on millionaires.
However, the Treasury Department’s chief economist said new data shows higher taxes drive top income residents out of the Garden State.
“It’s often the case people in those brackets have New Jersey business interests and tend to employ people in New Jersey,” said Charles Steindel. “So it would have some negative effect.”
The liberal group New Jersey Policy Perspective, which disputes the findings, said raising taxes on the rich does not cause them to leave and actually results in substantial new revenue.
Gov. Chris Christie is adamant that he will not sign any legislation that increases state income taxes.