From the Star Ledger:
Last June we had a fight on taxes in the state budget.
On one side was Gov. Phil Murphy. He wanted to raise the income tax to go after rich people.
On the other side was Senate President Steve Sweeney. He wanted to raise the corporate tax on businesses.
They compromised. Each got a somewhat smaller version of the type of tax hike he demanded.
Last month we found out who won that fight:
Sweeney – and by a knockout.
The decision came when the Treasury Department released revenue figures for the final quarter of the 2018 calendar year, which had to be paid by Jan. 15, 2019.
The report said corporate tax revenues were up 74.5 percent compared to the prior year after Sweeney’s 2 percent surcharge went into effect. So that was good news.
Meanwhile on the income tax side, Murphy got some bad news about the hike to 10.75 percent in the top rate of the so-called “millionaire’s tax.”
How much did income-tax receipts go up?
Zero. In fact, revenue dropped 6 percent compared to the prior year – despite the booming economy and the tax hike.
When I asked Sweeney about this last week, he said there was nothing surprising about that result. It was entirely predictable after the Trump tax reform ended federal deductions for state and local taxes – “SALT” for short.