Murphy makes new millionaire’s tax, CBT offer

Gov. Phil Murphy is offering the Legislature a 2% Corporate Business Tax (CBT) surcharge for four years, a 10.75% Millionaire’s Tax for New Jerseyans making $1.75 million or more – a proposal he’s done before – and taking the sales tax increase proposal off the table.

“We are close, and I ask you all to join me and fully commit to getting this budget done in time to avert a costly government shutdown. The people of New Jersey deserve nothing less,” Murphy said in a letter to the Legislature.

State government is set to shut down at midnight if the governor and legislature cannot agree on a budget.

“Time is of the essence. If we cannot have an agreement, it is the people of New Jersey who ultimately will suffer,” Murphy said.  “Our shared priorities, and our credibility, would be at risk. Everything we would hope to accomplish for our state and our people hangs in the balance.

Murphy said that yesterday’s offer from legislative leaders of a 9.95% tax rate on incomes of more than $5 million would raise $160 million in added revenues, an amount that won’t get the state anywhere near “where we need to be to protect core budget investments.”

“Even I would be exempted at that level.”