Governor Wants to Raise Spending by Nearly $3 Billion, Increase Taxes by $1.6 Billion

Senator Jim Holzapfel, Assemblyman Dave Wolfe, and Assemblyman Greg McGuckin of the 10th Legislative District blasted Governor Phil Murphy’s proposal to increase the New Jersey budget by nearly $3 billion with a slew of new tax increases to pay for it.

“After years of fiscal discipline under a Republican governor where our budget and taxes were held relatively flat, our new Democratic governor is blowing the budget up by nearly 8 percent in a single year,” said Holzapfel. “It’s a progressive spending wish list that will bankrupt New Jersey. He wants to raise income taxes, business taxes, sales taxes, and taxes on online sales and ridesharing services like Uber and Lyft. Rolling back the sales tax reduction that was implemented to offset the gas tax increase represents a broken promise by Democrats. He also wants to legalize marijuana and is banking on tax revenue from that. We shouldn’t sell our souls by selling pot.”

Governor Murphy’s proposed budget would increase spending from the current year’s appropriation of $34.7 billion to $37.4 billion next year, an increase of $2.7 billion.

“The APP headline on Governor Murphy’s budget hit the nail on the head: ‘Proposed Murphy taxes would hit every resident,’” said Wolfe. “While Governor Murphy is trying to spin his tax increases as only hitting millionaires and corporations, it’s clear that everyone will pay the price. There is not a single New Jerseyan who won’t pay more in taxes under the Governor’s spending plan.”

Among the tax increases the governor have proposed, include:

Income tax increase — $765 million
Sales tax increase — $546 million
New ride-sharing and house-sharing taxes — $132 million
Business tax increases — $110 million
Marijuana taxes — $80 million

According to the Asbury Park Press, those tax increases, along with others, would total approximately $1.6 billion.

“Governor Murphy’s budget speech focused on billions in new taxes and spending, but he spoke very little about fiscal discipline, spending restraint, or property tax relief,” added McGuckin. “Our state’s biggest challenges are a lack of affordability and competitiveness with neighboring states that are luring our families and jobs away through lower taxes and a lower cost of living. Not only does the Governor’s budget fail to address those challenges, it sends us completely in the wrong direction.”