TRENTON, NJ—Rising inflation and the overall cost of living in New Jersey could get even more expensive this week after Governor Phil Murphy and state Democrats are debating a plan to increase the sales tax rate behind closed Doors.
New Jersey’s Governor, Phil Murphy, and the state’s Democratic-led legislature are reportedly discussing a plan to increase taxes on large corporations to support a record-high state budget. and to roll out an increase of New Jersey’s sales and use tax.
Governor Murphy, who has increased the state budget from $34 billion to over $55 billion during his six-year tenure, is considering reinstating a 7% state sales tax.
Republican Assemblymen Alex Sauickie and Robert Clifton confirmed that the proposal is being discussed in the halls of the Statehouse.
Under the proposed plan, these corporations would face a 2.5% tax on all earnings for the next five years, effective retroactively from January 1, 2024. This move aims to generate additional revenue to address a significant budgetary shortfall, particularly to provide funding for the financially struggling NJ Transit, which anticipates a $766 million deficit in fiscal year 2026.