TRENTON – Top New Jersey Democrats on Monday unveiled a plan to restore an income tax surcharge on the 16,000 New Jerseyans with taxable incomes of at least $1 million. According to the lawmakers, this would enable them to eliminate Gov. Chris Christie’s proposals to hit senior and disabled citizens with increased prescription drug fees and slash their property tax relief.
The millionaire’s tax would raise $637 million and eliminate Christie’s plans to force senior citizens to pay more for prescription drugs while slashing their property tax relief.
“From day one, the Governor’s plan to protect the rich from the any of the pain being delivered by his budget has flown in the face of both common sense and common decency,” said Senate President Stephen M. Sweeney (D-Gloucester/Cumberland/Salem). “This plan re-centers our priorities.”
“This is a compassionate plan that allows the shared sacrifice of our most fortunate 16,000 residents to help more than 600,000 senior and disabled citizens struggling to pay for medication and keep their homes,” said Assembly Speaker Sheila Y. Oliver (D-Essex/Passaic). “We have made it very clear that we will work with the governor to solve our budget problems, but Democrats will not do so at the expense of elderly New Jerseyans. This plan spreads the pain and protects our most vulnerable.”
Under the Democrats’ plan:
· The income tax rate on those earning $1 million would be temporarily restored to 10.75 percent from 8.97 percent.
· Christie’s plan to charge a new $310 deductible to 105,000 senior and disabled citizens in the Pharmaceutical Assistance to the Aged and Disabled prescription drug program and 23,000 senior citizens enrolled in the Senior Gold prescription drug program would be eliminated.
· Christie’s plan to more than double prescription drug co-payments on those senior and disabled citizens would be eliminated.
· Property tax rebate checks for more than 600,000 senior homeowners and tenants would be restored to last year’s levels, providing as much as $1,295 in property tax relief to senior and disabled residents.
An analysis prepared last month by the nonpartisan Office of Legislative Services reported that under the Christie plan, a retired couple living on a fixed income of $40,000 would see a $1,320 increase in taxes while a family making $1.2 million would receive a tax cut of $11,598.
That analysis did not include estimates for the higher prescription drug costs, which the New Jersey Foundation for Aging estimates will cost the average senior citizen an extra $430 per year.
“Asking seniors and the disabled to pay thousands of dollars in higher property taxes and prescription costs while providing a huge windfall to the extremely wealthy is simply unconscionable,” said Senate Majority Leader Barbara Buono (D-Middlesex). “Today we renew our promise to seniors and the disabled that their quality of life is our priority.”
The leaders noted that limiting the surcharge to taxable incomes of at least $1 million would shield small business owners.
“We’ve heard a lot about how Gov. Christie is not going to approve any tax increase, yet his budget proposal is already built on tax and fee increases on the poor and middle-class, especially placing a heavy load onto the poorest seniors,” said Assembly Budget Chairman Lou Greenwald (D-Camden).
Sweeney and Oliver said they expect the legislation implementing their plan is expected to be heard during Thursday committee hearings, then posted for floor votes on May 20.
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