Third Time The Charm?: New Jersey Democrats Again Propose Millionaire Tax

Democrats in the New Jersey state legislature have twice passed a millionaire’s tax, only to see it vetoed by Gov. Chris Christie (R-NJ) both times. But they’re going to give it another go this summer, hoping that the third time is the charm:

Assembly Majority Leader Lou Greenwald, a Democrat from Voorhees who has attracted pointed criticism from the governor, said both chambers will present plans to increase taxes on earnings over $1 million. He said the surcharge would raise about $800 million, all of which would be used to pay for property tax credits for senior citizens who make less than $150,000 and other homeowners with incomes under $75,000.

Christie has vetoed virtually the same plan in each of the past two years, and he has been pushing a plan to reduce income taxes by 10 percent over three years.

Christie has been attempting to implement an income tax cut that would primarily benefit the wealthy, but New Jersey’s revenue projections came in much lower than expected.

Christie’s justification for vetoing the tax is that millionaires will flee New Jersey to escape it. However, study after study has shown that simply isn’t the case. Steve Roth at the economics blog Angry Bear has shown that millionaires simply don’t congregate in low-tax states, noting that “of the 12 states with the highest concentration of millionaires, 10 (83%) have above- or at-trend (in this case, median) income tax rates”:

Even Christie’s chief economist once backed a millionaire’s tax to address the Garden State’s budget woes, but his boss appears no closer to changing his mind.