TRENTON, N.J. — Gov. Phil Murphy’s proposed budget would raise taxes by more than $1 billion, according to calculations by Assembly Budget Committee member Brian Rumpf, who criticized the plan as making New Jersey less affordable.
“The middle-class in New Jersey is continually nickel-and-dimed by tax increases that take money out of people’s pockets,” Rumpf (R-Ocean) said. “These tax hikes are regressive. Paychecks are lower and bills are higher, the price of goods keeps going up and finances are becoming a bigger concern for people and their families across the state.”
The budget proposal includes new taxes on internet gaming, online sports wagering, vehicle trade-ins, and property sales over $1 million, among others. The tax hikes total approximately $1.1 billion, with the largest increases coming from sports betting, participatory sports, and high-value property sales.
Murphy has also proposed raising cigarette taxes, increasing fees on firearms, and imposing new levies on intoxicating hemp products and drones. However, the budget includes one tax cut, exempting baby products such as cribs and strollers from sales taxes, a measure originally proposed by Republicans.
The largest tax increases in the budget include $322.6 million from internet gaming, $317 million from property sales over $1 million, and $277 million from participatory sports. Other notable increases include a rise in the marijuana tax from $2.50 to $15 per ounce and a 10% increase in alcohol taxes.
Murphy’s budget proposal now faces scrutiny from the Legislature as debates over tax policy and affordability intensify.