Yesterday, the Office of Legislative Services outlined what they described as the worst income and sales tax statistics in anyone's recollection. That was followed by a list of spending cuts and tax increases, including the tax hikes listed below:
- Raise the income tax on New Jerseyans earning more than $400k annually. The rate would increase from 6.37% to 8%
- Tax hike on those earning $1 million. The rate would go from 8.97% to 10.75%
- Raise the insurance premium tax from 2% to 2.25% ($66 million)
- Increase the HMO assessment from 2% to 3% ($50 million)
Yesterday's full report from the State Treasurer is available via this link. In total, about $400 million in new taxes and tax hikes are part of the package.
Good news to business owners is that the Treasurer reiterated the Governor's commitment to contribute $120 million into the state's Unemployment Insurance (UI) fund. Previous raids of $4.7 billion from UI left the fund unable to manage the current downturn. Employers are already facing a tax increase equal to about $90 per employee at their company, effective July 1. If the state reneged on its promise to infuse UI with at least $120 million in cash, the accompanying tax hike would have been far worse.
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