Thursday, March 15, 2018

Murphy's New Jersey's Budget Would Raise Taxes on Almost Everything

The NJ sales tax that was lowered after the new gas tax, will now be raised again according to Murphy's Budget plan. 
 (Bloomberg) -- New Jersey Governor Phil Murphy proposed taxing online-room booking, ride-sharing, marijuana, e-cigarettes and Internet transactions along with raising taxes on millionaires and retail sales to fund a record $37.4 billion budget that would boost spending on schools, pensions and mass transit.  The proposal, 4.2 percent higher than the current fiscal year’s, relies on a tax for the wealthiest that has yet to be approved and lacks support from key Democrats in the legislature. It also reverses pledges from Murphy’s predecessor, Republican Chris Christie, to lower taxes in a state where living costs are among the nation’s highest.


Murphy, a Democrat who replaced term-limited Christie on Jan. 16, said his goal is to give New Jerseyans more value for their tax dollars. He has promised additional spending on underfunded schools and transportation in a credit-battered state with an estimated $8.7 billion structural deficit for the fiscal year that starts July 1.

“If we enact another budget like the one our administration inherited, our middle class will continue to be the ones shouldering the burden, while seeing little in return,” Murphy said Tuesday in his budget address to lawmakers. “A millionaire’s tax is the right thing to do –- and now is the time to do it.”

Millionaire’s Tax
The budget counts on total revenue growth of 5.7 percent, the most since at least 2013, when it fell short. Murphy would increase the tax rate applied to income above $1 million to 10.75 percent from 8.97 percent, generating $765 million; and restore the state’s sales tax to 7 percent from 6.625 percent, raising $581 million. The state would gain $100 million by closing a carried-interest loophole on hedge-fund income.

“He must be kidding,” Senate Minority Leader Tom Kean Jr., a Republican from Westfield, said after the speech. “I don’t think anybody could have anticipated this level of tax increases.”

Murphy’s proposal would almost triple the direct state subsidy for New Jersey Transit, which has been plagued by safety and financial issues. Including funding for the agency from the state’s Turnpike Authority and an energy fund, he boosts money for New Jersey Transit by about a third.

His plan also includes a move to raise the state property-tax deduction to $15,000, which would benefit about one-third of homeowners, according to a budget summary. It also would create a child-care tax credit and increase the earned-income tax credit. Read more here

10 comments:

  1. Seems like he is going after the rich. I don't think that is a bad thing, also will fixing the broken ed system can dhelp us all

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    1. Spoken as a true communist

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    2. Socialism aside, NJ has a spending problem, not an income problem. Notice how with all these increased taxes all it gets you is an extra 100 million which is just a fraction of the problem. But it is enough to drive the rich out of the state, so in the longer term it actually will make the problem worse. This is part of why big government doesn't work.

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  2. Everybody who has,a large family and makes enough to pay his tuition ,housing and making Chasunah is considered rich by boyish standards even though they are barely making it .

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  3. Sales tax is a tax on everyone, ride sharing is a tax on everyone (generally not the wealthy, who use their own cars, internet transactions is a tax on everyone.

    Earned income tax increases is social engineering and the re-distribution of wealth. Taking the money from people who work, and giving it to those who don't. The poor already have HUD, WIC, JerseyCare etc. It is the middle class in NJ who are being crushed.

    Aside for that, people who earn over a million annual, are generally very mobile, what is going to stop them from moving to Florida, which is tax free, for 6 months of the year, or maybe just move there completely.

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  4. How come the scoop doesn’t post this...??

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    1. Because the vaad and it's ilk want you to think that Murphy will fix the school funding formula and your taxes will nosedive

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  5. oy!
    my property taxes just almost doubled. I cannot take much more of this...
    anyone want to start an out of town community in Delaware? I bet we can snap up some inexpensive houses. short drive to lakewood for weddings, shopping and visiting...

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  6. Michael I trying to justify the 600k+ salary with this PR Campaign how Murphy will save the district. Tax everyone else to pay for something else.

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