NEW JERSEY – The $56B State budget proposal laid out by Governor Murphy would put the state on an unsustainable path for the future and any plan by legislative Democrats to raise taxes again will only worsen New Jersey’s affordability crisis, said Senator Parker Space, Assemblywoman Dawn Fantasia, and Assemblyman Michael Inganamort.
“If there’s one thing you can count on in June, it’s Trenton Democrats talking about raising taxes and fees to support a bloated State budget that will saddle already struggling families and businesses with higher costs,” said Space (R-24). “New Jersey is standing at a crossroads – do we continue our wild spending patterns of the past or do we live within our means? The only way to make New Jersey a place where all residents can afford to live and where small businesses can thrive is to stop spending money we don’t have, exercise fiscal responsibility, and pass a budget that is truly responsive to taxpayers.”
According to the lawmakers, some of the new tax increases being explored or implemented include:
- 3% toll increase for New Jersey commuters, bringing 50% toll increases over three years—effective March 1.
- 15% fare increase for New Jersey Transit riders taking effect in the next few months and 3% automatic increases every year thereafter.
- Regressive employee wage taxes that will take effect next January 1.
- Implementing a new ‘Corporate Transit Fee’ on New Jersey businesses—a cost which will end up being passed along to consumers.
- Raising the sales tax back to 7%.
- A new $10 million tax on “truck traffic” harming small business owners and consumers.
- Raising fees on gun permits for law-abiding firearm owners.
- New utility tax on water, gas and electric users.
- Tax hike on HMO consumers.
These new tax and toll increases will build on dozens of previously enacted tax and toll increases from prior years on everything from utilities, health care, ridesharing, income taxes, wage taxes, and parking, the lawmakers said.
“New Jersey taxpayers cannot withstand the Democrats’ insatiable appetite for spending. From uncapping property tax increases to proposing to hike a regressive tax like the state sales tax, it’s clear that Democrats don’t care about affordability,” Fantasia (R-24) said. “Republicans want Democrats to reprioritize and rein in this reckless tax-and-spend culture they continue to force on all of us.”
To make up for state aid cuts to schools in Murphy’s budget, Democrats passed legislation that would eliminate the 2% cap on property taxes for certain school districts facing unsustainable state funding losses. It was signed by Murphy on May 14, the lawmakers said.
“The cost of doing business, living, retiring, commuting and nearly everything is much too high in New Jersey and Democrats are only making it worse. Legislative leaders need to start considering the day-to-day impact of their calls for tax increases and instead focus on crafting a balanced budget that delivers relief to burdened residents,” Inganamort (R-24) said. “Putting a stop to spending over what New Jersey brings in is a good first step, but Democrats can’t even manage that.”
Murphy’s proposed budget will spend $4 billion more than revenue that is coming in on a recurring basis—a significant structural imbalance, the lawmakers said.
