New Jersey Governor Phil Murphy will unveil his first state budget plan in a speech to a joint session of the legislature tomorrow. He is calling for expanding the sales tax to ride-sharing and certain accommodations like Airbnb.
"This budget meets the standards by which we will build a stronger and fairer New Jersey that works for all of our residents", added Murphy.
Those making over $1 million would be taxed 10.75 percent, up from the current rate of just under 9 percent. Assembly Democratic leaders said in a statement that they "promise" to review the proposals.
Republicans were much more critical.More news: Trump considering Perry for veterans affairs secretary
The federal tax plan caused Senate President Stephen Sweeney (D., Gloucester), to back off his support for a tax on millionaires - which could throw into question the fate of Murphy's proposal.
Republican lawmakers say that the Office of Legislative Services is forecasting a budget surplus of $800 million to $1.5 billion.
The state's pension contribution would rise from $2.5 billion to $3.2 billion.
"Legalization will allow us to reinvest directly in our communities - especially the urban neighborhoods hardest hit by the misguided War on Drugs", Murphy said. The hike is estimated to generate more than $750 million. But with budget increases come new taxes.More news: Google is banning all bitcoin, ICO, and cryptocurrency ads from June
Opponents of a tax on millionaires also say it would make the state less competitive and would deter high-earning individuals from living there.
"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". And he is banking on about $110 million as a result of what he called technical changes to the corporate business tax.
New Jersey's new Gov.More news: German parliament confirms Chancellor Angela Merkel for 4th term
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