State Sen. Joe Pennacchio on Wednesday slammed his Democratic colleagues and Gov. Phil Murphy over fiscal policies he said were leading the state into a death spiral.
“Unfortunately, Governor Murphy and New Jersey Democrats still haven’t learned from their mistakes,” Pennacchio said. “They’re doubling down on tax-hiking policies that have never worked, and New Jersey is doing worse than our neighbors and most of the nation as a result.”
Last June, Murphy, Senate President Steve Sweeney and Assembly Speaker Craig Coughlin reached a budget deal that bumped the state’s corporate business tax and created a new marginal state income tax rate for those making more than $5 million per year.
It’s not clear whether those policies will end up hitting their mark through the end of the fiscal year, but the state’s tax collection growth has lagged following the measure’s passage.
Between July and January, the state’s revenue grew by about 3%, far short of the 7.5% growth New Jersey’s $37.4 billion budget assumes. To make matters worse, much of that 3% is pinned on a tax amnesty program that brought in roughly $300 million this winter.
“Every time we hike taxes, the moving vans line up to take former New Jersey taxpayers to their new homes in more affordable states,” Pennacchio said.