No New Taxes In NJ For Next 4 Years, Gov. Murphy Pledges

NEW JERSEY — Gov. Phil Murphy has said New Jersey has made a lot of progress in the last four years, and he wants to see that progress continue. That means a lot of things, but one thing it doesn’t mean is new taxes, Murphy said in his first debate against Jack Ciattarelli, his Republican challenger in the Nov. 2 elections.

“I pledge to not raise taxes,” Murphy said in response to a question from moderator Sade Baderinwa. “At any time in the next four years, but I’m not making news tonight. I’ve been saying this for the past year. The answer is I pledge to not raise taxes.”

He reiterated those comments the following day during his weekly news conference.

“Not only do I pledge no new taxes; I want them to go down,” Murphy said. “One big example is getting the darn cap on the SALT deduction lifted, which we will continue to fight until we get it lifted.”

The State and Local Tax (SALT) deduction was instituted in 2017 as part of the Trump Administration’s Tax Cuts and Jobs Act. It put a $10,000 limit on how much taxpayers could deduct from their federal income taxes, but it has been criticized by progressives who say it benefits the rich.

Murphy has raised taxes in the past, including the so-called millionaire’s tax that increases the tax rate from 8.97 to 10.75 percent on those earning between $1 million and $5 million.

However, he has said since introducing the state’s fiscal budget back in February that he wouldn’t raise taxes. Read more here: No New Tax Increases, Fees For NJ Amid COVID, Gov. Murphy Says

Critics have their doubts, as do New Jersey residents. In two recent polls, prospective voters have said they favor Ciattarelli when it comes to taxes. In a poll released by the William Hughes Center for Public Policy at Stockton University, Ciattarelli topped Murphy on the issue, 46 percent to 38 percent.

In a Monmouth poll released last month, voters gave Ciattarelli a 39 percent to 33 percent edge over Murphy when it comes to the issue.

But Murphy touts his record, saying the millionaire’s tax provides needed tax relief to the middle class, and saying he’s taken the burden off municipalities that allocate more than half of their tax revenue to school funding by directly investing in public schools at the state level.

He cites as examples:

• Expanding the Senior Freeze program, making it available to more than 23,000 seniors for the first time since 2011;
• Making more than 50,000 more peacetime veterans eligible for the Veterans Property Tax Deduction;
• Providing millions of dollars in grants to local and county governments to make schools more efficient; and
• Increasing direct pre-K through 12 spending by nearly $1.5 billion in four years.

This year’s budget included a rebate check program that made about 800,000 New Jersey residents eligible to receive a $500 rebate check. Read more here: Gov. Murphy Signs 2022 Budget - With $500 Rebate Checks

But both Republicans and progressive Democrats have blasted the tax rebate as an election year gimmick. They also accused state lawmakers of not being open and transparent on this year's budget process. Read more here: NJ Progressives, GOP Blast Lawmakers As Budget Vote Nears

Murphy maintains that progress has been made, and now is not the time to “move backwards.”

“We have made progress on property taxes, but we have a long way to go,” Murphy said. “If you’re a working class family today, you’re paying lower income taxes, you’re paying less for health care, you’re paying less for child care, you’re paying less for college, you’re not paying one cent more to ride on NJ TRANSIT.”

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