New Jersey governor's budget plan already making waves

  • New Jersey governor's budget plan already making waves

New Jersey governor's budget plan already making waves

Gov. Phil Murphy will deliver his first budget address Tuesday afternoon at the State House. He is calling for expanding the sales tax to ride-sharing and certain accommodations like Airbnb.

The plan makes a push for increasing contributions to public education, legalizing recreational marijuana and raising the state sales tax.

New Jersey residents would pay a new 10.75 percent marginal tax rate on any income above $1 million.

Republicans were much more critical.

"That's simply irresponsible", he said.

Some lawmakers have proposed decriminalizing small amounts of marijuana, but Murphy says the state needs to carefully legalize, regulate, and tax marijuana sales.

"Legalization will allow us to reinvest directly in our communities, especially the urban neighborhoods hardest hit by the misguided war on drugs", said Murphy. Christie had successfully pushed for lowering the sales tax under a plan in 2016 that also hiked the gas tax by about 25 cents, from 14 cents a gallon to 37.5 cents a gallon. The top tax rate is now 8.97 percent, for income over $500,000. The hike is estimated to generate more than $750 million.

"I pledged to create a stronger and fairer New Jersey that measured success not by what we could do for the few, but by what we could accomplish for all nine million of our residents", Murphy said.

The Democratic governor is expected to announce an increase for the state's millionaire's tax, an idea that has angered some Republican lawmakers.

But after Murphy was elected in November, Congress passed a new federal tax plan that will impact homeowners in New Jersey by capping deductions for state and local income taxes.

"You're going to see the Democratic Party do exactly what they did a decade ago, send us on a mission to higher taxes, more people leaving the state, more businesses either planning to leave or not entering the state".