New tax law boosts paychecks, yet complicates budget outlook
TRENTON, N.J. (AP) — The sweeping Republican tax overhaul is emerging as a hurdle for New Jersey Gov. Phil Murphy as he assembles his first budget.
The issue comes as the Democrat-led Legislature this week considers legislation to push the governor’s budget address from February to March. It’s a move lawmakers have made before for new governors.
But this year the change gives Murphy extra time to review the changing tax climate’s effects on state revenue.
The federal changes complicate state revenues for the Democratic governor, who has promised higher pension payments and increased education funding. Murphy has said he would pay for that through an income tax hike on millionaires.
But a key lawmaker is pumping the brakes on that idea.
Senate President Steve Sweeney says raising taxes will be “the last stop” for him.