New Jersey’s $29 billion budget for FY 2010 is now law. Taxes have been raised on cigarettes, wine, and liquor. And there is a new tax rate of 10.25 percent on those earning over $400,000 (the ever-expanding and misnamed “millionaire’s tax” introduced by Governor McGreevey in 2004 was aimed at those earning over $500 million). In addition to the federal bailout, New Jersey managed to get a $2.1 billion line of credit from J.P. Morgan Chase early last month.If the legislature spends it all, they’ll have to tack on $18 million in interest payments.
There will be no property tax rebates for those earning over $75,000 (excepting the elderly and disabled).
There are no layoffs for union-represented public employees. Spending will be increased in public schools, college tuition aid, and on Family Care health coverage.