Murphy’s Law: Taxes to rise at least 1.3 Billion next year in New Jersey

New Jersey has the highest taxes in the nation. Period. With attention on tax reform and Washington’s move to end the State and Local Tax deduction, it is likely that New Jersey will receive a jolting dose of reality. But that will be further inflamed with an increase of at least 1.3 billion dollars from Goldman Sach’s latest gubernatorial nominee, Phil Murphy.

Murphy says: “I’m going to raise your taxes.”

No if’s, and’s or but’s. Gonna happen. Also going to add tolls on free interstate highways and raise existing tolls on the Turnpike, Parkway and Atlantic City Expressway. He wants a taxpayer funded Sanctuary State and control over all private capital with a Socialist State Bank.

Big plans take big bucks. Free community college will take another $200 million…and the cost of a universal pre-K…fuhgeddaboudit!

The only problem in the land of Murphy, will be the elimination of the middle class and retirees. Taxes are driving them out now, but his crushing tax increases will accelerate the outward migration as soon as the democrats take the Assembly, State Senate and the Governor’s Mansion. All that will be left will be the social service class.

Murphy, a former U.S. ambassador to Germany and ex-Goldman Sachs banking executive, has said money from the tax increases will be prioritized for public-worker pensions, education and transportation. But Murphy said he hopes to institute new programs like universal pre-kindergarten and free community college tuition on top of that.

Murphy said his free community college plan would cost only $200 million a year and that he will “find a way” to make it happen. He added that instituting universal pre-K is “more expensive” and would take “more years to phase in.”

Murphy has declined to say whether he would support renewing a 2 percent cap on raises that New Jersey police and firefighter unions can win through arbitration.The cap on awards police and fire unions can win through interest arbitration sunsets at the end of the year. New Jersey mayors and county freeholders have argued that the ceiling is one of the most effective tools to keep them within a state-mandated 2 percent cap on increases in spending. A report on the interest arbitration cap is due by the end of the year. But local officials say they need to know, as they’re building their budgets for next year, that they won’t be sabotaged by higher arbitration awards if the cap isn’t extended.

Employers and labor groups head to arbitration when they deadlock over contracts. The cap sunsets at the end of the year, and local leaders argue that property taxes will rise and services will be cut if the state Legislature doesn’t renew it. Christie has said he would sign a bill re-upping it during the lame-duck session after Election Day if the Legislature sends him one. But top Democratic lawmakers are waiting on instructions from Murphy.

Murphy has repeatedly said that he is waiting for the results of a report about the effectiveness of the cap, due by the end of the year.

“Let’s wait until it comes out,” Murphy said. “We will make a decision based on fact, taking all sides into consideration.”

Christie and Guadagno have bashed Murphy for withholding his support of the cap until the study is done. In the decades before the cap was installed, arbitration awards ranged from 2 percent to nearly 6 percent. Since 2011, independent arbitrators have been limited to awarding annual raises up to 2 percent.

The law was extended a first time in 2014 without a single vote against it. But Murphy is playing it safe to keep public unions from attacking him in this election.

Bottom line: The debt load on New Jersey will increase as the tax burden crushes the economy. Phil Murphy paid a lot of powerful democrats to get the nomination, but we will be handed the staggering bill for his new social programs.

Leave a Reply

Your email address will not be published. Required fields are marked *