Sets flat gross income tax rate at 5.9 percent tax for all taxable income over $37,500 or $75,000, depending on filing status; exempts taxpayers with less income from gross income tax.

This bill (S 3311) replaces New Jersey's current progressive income tax system with a flat 5.9% tax rate on income above specific thresholds. It directly affects individual taxpayers and families filing jointly whose income exceeds $37,500 (single filers) or $75,000 (joint filers). The bill exempts all income below these thresholds from state income tax, meaning lower earners pay nothing. This would simplify the tax structure by eliminating the current multi-rate system for most taxpayers.