New Jersey governor proposes a new tax on millionaires

New Jersey Gov. Phil Murphy delivered his second budget address Tuesday. He called for about $1 billion in increased spending that would be financed by taxing the wealthy and savings from public workers' benefits.

The "millionaires' tax," which would tax residents making over $1 million, would help relieve the burden on the middle class and senior citizens, according to the governor.

"This is not a tax that will be paid by anyone in the middle class," Murphy said.

But the idea is not sitting well with Republicans, who fear that a tax increase will drive people out of the state.

Murphy's $38.6 billion budget proposal is roughly 3 percent higher than the current year's $37.4 billion budget, which expires on June 30.

Murphy also proposed increasing general funds for NJ Transit, no hikes on fares, and a 3-percent increase in aid for education.

The governor may have a hard time passing the millionaires' tax because Democrats in the legislature have said they won't support higher taxes.