- Associated Press - Monday, June 22, 2015

TRENTON, N.J. (AP) - Democrats in New Jersey have unveiled their plans for a fiscal year 2016 budget.

As they have said for weeks, the measure includes a tax increase on income over $1 million. But the legislation also has other tax increases that residents are hearing about for the first time, among other provisions.

Here are the major differences between the Democrats’ $35.3 billion budget and Republican Gov. Chris Christie’s $33.8 billion proposal.

___

TAX ON MILLIONAIRES

The tax is expected raise about $700 million and - unlike previous Democratic proposals - this measure affects only income over the $1 million threshold. The proposal, which was unveiled earlier this year, calls for raising the rate from 8.97 percent to 10.75 percent for four years. Christie’s budget does not include income tax increases.

___

CORPORATE BUSINESS TAX

Democrats are proposing a one-time 15 percent surcharge on the corporate business tax. This is expected to net New Jersey revenue of $435 million. The state’s rate is now 9 percent.

___

REVENUE REVISIONS

The Legislature’s revenue gurus say they now expect the state to haul in $425 million beyond what was expected in fiscal year 2016. That’s on top of an additional $300 million in larger-than-expected revenues in the current fiscal year. Democrats are counting on this revenue to make up their budget. Christie is not.

___

PENSION PAYMENT

Democrats are making a $3.1 billion payment into the public pension. That’s the amount called for under a 2011 law. Christie is proposing a $1.3 billion payment, and was backed up recently by the state Supreme Court. It held that while workers have a right to their pension, Christie and the Legislature would have to work out the annual payment.

___

PLANNED PARENTHOOD

Senate Budget Committee Chairman Paul Sarlo says funding for Planned Parenthood would be added to the budget. Christie has previously vetoed Democratic attempts to restore the funding.

LOAD COMMENTS ()

 

Click to Read More

Click to Hide