In a speech delivered yesterday, New Jersey governor Phil Murphy outlines his budget plan for the fiscal year. Murphy said his administration planned to spend $38.6 billion, and that his administration had identified $1.1 billion in potential savings which would help alleviate the heavy financial costs of his ideas.
The primary source of funding for Murphy’s proposed budget would come from tax hikes on millionaires. He had proposed doing so last year, but backed down after fierce opposition from Democratic lawmakers in the Assembly and Senate, instead settling on a tax hike on multimillionaires, which raised the marginal tax rates on those earning over $5 million dollars from 8.97% to 10.75%. Now Murphy wants to include anybody making over $1 million in that raise. Such an inclusion would affect over 18,000 New Jersey state residents and 19,000 out of state residents.
The proposal is so ridiculous that New Jersey Democrats are expected to confront the governor over it. They’ve already said they won’t even entertain the idea before pension reforms are passed.
What Murphy has shown throughout his governorship is that he believes in the disproven theory that by placing higher taxes on wealthy people, people earning less will be better off. The truth lies elsewhere. According to multiple studies, New Jersey has been hemorrhaging billions of dollars in lost revenue due to an exodus of millionaires from New Jersey. Wealthy people have been fleeing the state for over a decade, choosing to invest their money in the economies of other states, specifically ones that won’t raid their coffers year after year. A marginal rates hike on millionaires will further encourage the wealthy to emigrate away from state-run highway robbery schemes.
Murphy’s spending plans are not economically sound or even feasible. They depend on a handful of optimistic forecasts like increased economic growth (his team were way off the mark on that last year), hoping that marijuana becomes legalized and getting revenue from sales tax, and passing the bill to raise marginal tax rates on wealthy people.
His expected savings of $1.1 billion are also not a sure-thing. It doesn’t depend on streamlining systems or eliminating waste, but rather on negotiating with state employees over health care benefits. Good luck with that, governor.
What Murphy’s budget completely fails to address is what is truly ailing New Jersey – Phil Murphy. Because for however long he is in office and continues to propagate his ultra-liberal economic theories, New Jerseyans will suffer and the wealthy will continue their exodus.
Well written and factually correct. While not ( yet) in the millionaire club, this will hasten the already alarming mass exodus of wealthy individuals from the state. Why don’t these politicians get it? Do they not see the same numbers that we do? Are they deliberately ignoring them and hoping we are blind?
I don’t see anyone moving out, Lakewood and others cities are booming, traffic is terrible, I hope people DO move out. we need to show compassion and that our values of rachmanim bnei rachmanim is not forgotten.
@David, what a foolish argument. It’s the millionaires who are moving out of New Jersey, read the article. Your rachmanus argument is ridiculous. How about the crushing yoke of property taxes that counties levy because the state keeps all other taxes for itself, and wants to raise it even more. State taxes, and millionaires taxes, etc. When millionaires move out, who do you think picks up the slack? We do! The typical Lakewood family is collapsing under the weight of the highest taxed state in the union. Rachmanus? Bah!
@david you’re Betty immature.
At least we won’t have to see the millionaires enjoying their money. It’s unfair that so much money sits in the hands of a few rich people while the rest of us struggle.
I’d rather live in a place where everyone’s poor than have to tolerate this unfair system. Let all the millionaires move out so that we can be all be equally poor.
5-Kinah Vesinah
Find it hard to believe you actually believe what your writing. if you do, it’s pretty sad. Such strong envy will not allow you to enjoy life period. Today it’s millionaires, tomorrow it’s a neighbor, next day it’s your brother in law. Develop a “good heart” that’ll help you a lot more than millionaires moving out.