Millionaire Pushes For Millionaire’s Tax In New Jersey

Some might think it’s strange that a wealthy, former Wall Street executive would be in favor of a millionaire’s tax. But according to Morris Pearl of advocacy group Patriotic Millionaires, it’s just common sense.

“Higher taxes aren’t a burden,” Pearl said during a rally at the Trenton War Memorial in New Jersey on Wednesday. “They’re an investment.”

Pearl – a former Blackrock executive who retired more than three years ago after a long career on Wall Street – joined local activists and community members to demand higher income taxes for millionaires, which they said will benefit all of the state’s residents… including the rich.

Why would a millionaire want to raise his own income taxes? According to Pearl, it’s not just a moral choice.

“By passing a millionaire’s tax, the state can more afford to properly fund its needs without hurting the people of New Jersey,” said Pearl, a resident of New York City who has also advocated for raising taxes for the wealthy in his own state. “Everyone, including the rich, benefit when the state is well-funded and prospering.”

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After holding a press conference, Pearl and the activists marched to the statehouse, where legislators were embroiled in their final day of budget hearings. Those sessions include a long-running debate on Gov. Phil Murphy’s proposed tax hike for households making more than $1 million per year.

The proposal – a centerpiece of Murphy's campaign platform – was only partially enacted in fiscal year 2019 in an effort to avoid a budget shutdown. Last year, state lawmakers settled on a higher income tax rate for earnings over $5 million. But this time around, Murphy wants to extend the 10.75 percent rate down to earnings over $1 million, which currently are taxed at a rate of 8.97 percent, NJ Spotlight reported.

Murphy’s latest proposal would raise $447 million in new revenue for the state, according to Better Choices for New Jersey.

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According to a recent poll, seven out of 10 New Jersey residents are in favor of the idea of raising taxes for millionaires. However, Murphy's proposed tax has hit a wall with lawmakers – including those from his own Democratic Party – who have voiced strong opposition to his plan. (Story continues below)

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On Wednesday, activists from Make the Road New Jersey, New Jersey Policy Perspective, New Jersey Working Families and New Jersey Citizen Action continued to hold legislators' feet to the flames.

“Today, middle-class New Jerseyans pay a greater share of their income in state and local taxes than the top one percent, the result of decades of tax policy and cuts tilted in favor of the wealthy,” New Jersey Policy Perspective President Brandon McKoy said.

McKoy said that despite recent reports that the state expects greater revenue returns than originally projected, there is still an urgent need for a millionaire’s tax.

“This effort is not just about next year's budget,” McKoy insisted. “It's about making sure New Jersey has reliable sources of revenue instead of relying on one shot gimmicks.”

Sue Altman, state director of New Jersey Working Families, blasted a decade-worth of “tax break after tax break” for the state’s wealthiest residents from Chris Christie, Democratic legislators and President Donald Trump.

“Worse, politicians have forced working families to foot the bill for those tax cuts through higher property taxes,” Altman said. “It's time to rebalance the scales and ask the fortunate few to pay their fair share. New Jersey needs real tax fairness, and that starts with a millionaire’s tax.”

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Dena Mottola Jaborska, associate director at New Jersey Citizen Action, said that a millionaire's tax would reinvigorate programs that protect public safety, health and children.

Jaborska took a jab at Democratic lawmakers such as Senate President Steve Sweeney, who recently rejected Murphy’s offer to give $250 million in property tax relief to residents if lawmakers approve his plan.

“Democrats who can't see that the money we have on hand is not enough to rebuild our crumbling transportation infrastructure, provide health coverage for all our children, and give our students and workforce the education and training they need are not clearly seeing the realities facing millions of New Jerseyans,” Jaborska said.

Valeria Gomez, a youth leader with Make the Road New Jersey in Union County, said that as a student at county college, she’d rather the state makes investments in schools, not millionaires.

“I’m proud to stand with this group – working class people and millionaires, advocates and business people – to call for a millionaire’s tax in New Jersey’s budget,” said Gomez, encapsulating the sentiments of many at Wednesday’s rally. “We come from different walks of life, but we share a common vision for our state.”

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