The Senate Budget Committee today advanced legislation that would provide $500 tax rebates to approximately 800,000 middle-and-low income New Jersey families.

“Families are struggling with financial challenges and uncertainty at a time of economic upheaval,” said Senator Addiego, who sponsored the legislation. “This will help New Jersey move forward through a time of crisis and provide middle class families additional support with a lasting tax cut. It will put money into the pockets of working families so they can support themselves and their children at the same time it puts money into the economy, helping generate jobs and business activity in communities throughout the state.”

From a Senate Majority Office release:

Under the plan, S-2949, rebates will go to single-parent families with incomes up to $75,000 and to two-parent households earning up to $150,000. An estimated $335 million would be distributed next year, when the program is in place.

The program would be funded by a “millionaires’ tax,” with an increase of less than 2 percent only on income between $1 million and $5 million. The rate would go from 8.97 percent to 10.75 percent, matching the current rate paid on income of over $5 million. The increase is expected to raise about $390 million.