Governor Vetoes Millionaires’ Tax

On May 20, in a vote along party lines, the Democratic-controlled state Assembly and Senate passed A-10, a measure to increase taxes on income in excess of $1 million.

Minutes after receiving the bill, Gov. Chris Christie vetoed it.

According to estimates, the bill would have raised $637 million. A companion bill, A-20, which earmarked the revenues from the millionaires’ tax for property tax rebates for senior citizens and the disabled, also passed. The governor vetoed that bill as well.

While news reports said state Senate President Steve Sweeney told Christie, “We’ll be back, governor,” it is unclear whether the Democrats will be able to override the veto with the required two-thirds majority in both houses.

NJSBA supports a one-year extension of the millionaires’ tax, in addition to urging local teachers unions to agree to a one-year wage freeze, and calling on state lawmakers to enact benefits reform for public employees.

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