From the Star Ledger:
N.J. is in a ‘fiscal death spiral’ and Murphy call for new tax on millionaires isn’t the answer, top Democrat says
New Jersey’s Democratic state Senate president, who is steadfastly opposed to the Democratic governor’s call to hike taxes on the wealthy, said Thursday that the Garden State is in a “fiscal death spiral” that can’t be repaired by raising taxes.
State Senate President Stephen Sweeney’s opposition to Gov. Phil Murphy’s plan to generate an estimated $447 million in new tax dollars through a millionaires tax complicates upcoming state budget negotiations, to say the least.
Murphy’s $38.6 billion proposed budget, which he unveiled Tuesday, proposes expanding the top marginal tax rate of 10.75 percent enacted last year to income over $1 million. During last year’s budget battle, Murphy sought the millionaires tax but agreed to a tax increase on income over $5 million.
“I’m not supporting it,” Sweeney, D-Gloucester, said of the millionaires tax during an interview with NJ Advance Media Thursday at the Statehouse in Trenton. “I’m not raising the income tax.”
Despite this conflict, Sweeney acknowledged the note of reconciliation Murphy struck Tuesday and said they’re already starting off on better terms than last year, when Murphy proposed raising more than $1.6 billion in taxes, including the gross income tax and the sales tax, and slashed $123 million for Democratic priorities.