May 15, 2019

Anna Murray 

New Jersey’s income tax collection surged to a record high in April. This surprising situation made the state leaders have an argument on how to use this surplus properly. 

The major reason to have the tax collection increased was the raise of major revenues in New Jersey. Governor Phil Murphy’s administration announced that the forecast would be expected to reach $377 million by the end of June 30. The government prepared to deposit all but $60 million of that money to a rainy-day account to protect state service and to deal with possible economic recession.

However, the state Legislature had different perspectives. Democratic state Senate Budget Chairman Paul Sarlo, D-Bergen, and Sen. Declan O’Scanlon, R-Monmouth, proposed to reset the plan of the surplus. They were looking for alternatives to replace Murphy’s plan for the “millionaire tax”. Paul Sarlo also questioned the justifiability of promoting a millionaire tax while the revenues are higher than expectation. 

The lawmakers were also trying to avoid Murphy’s proposal in promoting a property tax relief. State Treasurer Elizabeth Muoio stated that the details of the property tax relief have been determined and the plan will also benefit over 1 million taxpayers. Murphy needed to receive the agreement from the lawmakers who opposed this proposal. However, Senate President Steve Sweeney already declined this idea. 

Photo:Webshot.