New Jersey Democrats fail to extend millionaires tax

Do you think millionaires should be charged a hefty income tax? What if it was to solve one of the highest budget short-falls in history?

According to Reuters.com, New Jersey Democrats had wanted to reimpose a one-year, 10.75 percent tax on income above $1 million that would have hit 16,000 people. New Jersey's fiscal shortfall, at 37.4 percent of the current year's budget, is the second-highest among U.S. states, second only to Nevada, according to the Center on Budget and Policy Priorities. However, New Jersey Democratic legislators on Monday failed to gather enough votes to extend a tax on millionaires that would have been used to provide property tax relief for senior citizens and the disabled.

The millionaires' tax would have raised $637 million for rebate checks of up to $1,295 for some 600,000 senior citizens who would otherwise face steep increases in their property taxes during fiscal 2011.

Gov. Christie claimed the tax would keep the millionaire business owners from hiring in our tough economy. However, he proposed a constitutional amendment placing a 2.5 percent cap on annual increases in residential property taxes.

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Tax Relief For Special Needs Children

According to recent Census data, one in twelve children and teenagers have a physical or mental disability. With special education enrollment costs on the rise, parents are left with the financial burden of paying for special education. Although the Internal Revenue Service does not have any clear cut relief measures for these parents, there are many deductions that the IRS recommends that parents of special needs children take advantage of when preparing their tax return. Intuit has a helpful article on tax relief for special needs children that you can read by clicking here.