HOW MILLIONAIRES TAX HELPS MIDDLE CLASS

How millionaires tax helps middle class. Coronavirus infection levels are climbing all around the country again. As more and more Americans stay home to avoid infection, those rising infection rates will likely bring with them another serious economic downturn, just like they did in the spring. The drop in consumer spending will harm the bottom line of small businesses, which will them lay off employees–further depressing consumer demand. Clearly, a new federal stimulus package is necessary to save the economy from collapsing–but with the Biden Administration not taking office until January 20th, and the Senate leadership arguing against more stimulus, it’s unlikely that we will see meaningful stimulus packages until the new administration and Congress takes office. This means that state governments are on their own in the fight to protect their economies from the impacts of COVID-19. Many individuals will fall in the cracks and owe taxes and end up needing Tax Resolution Services.  But most states have suffered a decline in revenue as consumer spending has dropped in the pandemic, and so they’re confronting budget deficiencies at exactly the moment when they most need to invest in their own economies. We know that slashing budgets during a recession actually slows economic recoveries, so how can states increase revenue ? How millionaires tax helps middle class.

For the answer to that, look to New Jersey. This year New Jersey Governor Phil Murphy and the state legislature agreed on a deal to raise the income tax by 2% on incomes over $1 million per year to address the budget crisis brought on by the pandemic. Not only will this tax help administer coronavirus relief to the communities and small businesses that need it most, but it will also help rebalance a regressive state tax code which puts a bigger tax burden on poorer households. Murphy said he raised the tax because “I got elected to stand for a stronger, fairer New Jersey that works for not just some, but for everybody.” That meant asking the wealthiest New Jerseyans to “help us rebuild our middle class.” From the beginning, Murphy laid out the conditions for the tax very clearly, “Anyone earning a million dollars and up, we’re asking you to pay a few pennies more, and we’ll put every dime of that into the middle class.”