TRENTON, N.J. – The Democrats’ budget deal won’t be formalized until a Sunday morning voting session, Save Jerseyans, but the end result is foregone conclusion after a late Saturday press conference featuring Governor Phil Murphy and legislative leaders:
Taxes.
Lots of them. It’s a shakedown up epic proportions, one which includes NO structural reforms or substantial budget cuts.
“This was an ugly process that resulted in a budget plan that will tax New Jersey into the dark ages,” opined Doug Steinhardt, Chairman of the New Jersey Republican State Committee. “We’re just six months into Trenton being under one party control and it’s already obvious that our state representation is desperate for a major course correction. I believe that the partisan makeup of the legislature will look very different after the 2019 Murphy midterm election.”
Our Save Jersey Blogger-in-Chief Matt Rooney was more blunt:
Dairy cows have more rights than N.J. taxpayers (and get milked far less regularly).
— Matt Rooney (@MattRooneyNJ) June 30, 2018
What’s going up? And what’s not? Here are some broad strokes:
- The sales tax is staying put at 6.625% (Murphy wanted to raise it back up to 7%, where it was before the Christie-era gas tax compromise).
- Income taxes for those earning $5 million will rise to 10.75% (it’s currently 8.97%).
- A corporate tax surcharge of 2.5% for the current year and next year, 2% the following year, and 1.5% for the final fourth year. An income threshold wasn’t disclosed.
- There will be higher taxes assessed on Airbnb-style homeshare rentals in New Jersey, but the sales tax won’t be extended to short-term Jersey Shore home rentals.
- There will be taxes levied on e-cigarettes but not increases in gun fees.
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