Jun 07 Taxes & The New Jersey Governor’s Race
For a variety of reasons, many people are paying close attention to the upcoming gubernatorial race in New Jersey. As with any political race, many observers are focusing on the different personalities and different political parties that are vying to take the reigns of New Jersey’s government. When some people follow political races, however, they tend to find it easier and more productive to pay close attention to where each candidate stands. Which issue is most important, of course, varies from person to person. Many choose an issue that they feel an emotional connection to or one that they feel will have greatest personal impact on them and their family.
One issue that some people focus on politically, and the late-fall New Jersey governor’s race is certainly no exception, is taxes. Because the tax situation varies so much from state to state, taxation is always an interesting aspect of statewide races. Only New Jersey voters are able to best understand the implications of the candidates’ differing taxation platforms. The upcoming governor’s race is particularly interesting from a tax perspective because of the diversity of the candidates’ plans and the diversity of the tax rates that may be affected. With that being said, here is a look at the different tax rates that are up for discussion as the campaign season extends through this summer before culminating in November’s election. No matter what plans are enacted, a Clifton NJ tax consulting professional will be able to help businesses and individuals navigate through the changing tax landscape.
The income tax adjustments that are being proposed in the platforms of the different candidates are an important glimpse into their different political philosophies and the different implications that each candidate’s election would have for the state. In general, Democratic candidates are proposing ways to increase the tax revenue brought in by New Jersey’s government, though they do aim to do this in different ways. Democratic candidate Bill Brennan plans to install a new tax rate of just under 11% on income over $750,000, a tax that he estimates would bring in nearly a billion dollars. He has also considered a 10% additional surcharge for CEOs who make more than 100 times the median wage of their employees. Democrat Jim Johnson has formulated a plan for new tax brackets—similar to Brennan, his plan would tax income over $1 million at almost 11%. Other Democratic candidates similarly target tax increases toward the highest income earners of New Jersey. Some Republican candidates are also calling for tax increases on the top earners, while others are vowing not to increase taxes at all.
Certain Republican candidates advocate reductions in sales tax as well as income tax. There was recently a small drop in sales tax in New Jersey that took effect at the beginning of the year, and some Democratic platforms are seeking to reinstate the previous sales tax rate of 7 percent. The sales tax rate is currently 6.875%.
Estate taxes are another tax that is the subject of debate between the different parties and different candidates. When the recent gas tax increase of New Jersey took effect, the aforementioned sales tax was lowered, the estate tax was eliminated. Democrats are generally looking to reinstate this estate tax in some form. Some are looking to reinstate the estate tax for estates that are of a higher value than the previous estate tax included. Some Republicans are alternatively vowing to keep the estate tax cut while also entertaining the idea of eliminating the recent gas tax increase.