The Latest: Murphy, lawmakers say they reached budget deal
TRENTON, N.J. (AP) — The Latest on New Jersey’s budget (all times local):
New Jersey Gov. Phil Murphy and Democratic legislative leaders say they have reached a budget agreement.
Murphy, Senate President Steve Sweeney and Assembly Speaker Craig Coughlin announced the deal Saturday evening, just hours ahead of a midnight deadline.
The Democratic governor says the deal avoids a government shutdown.
Murphy says the deal will raise income taxes on people making $5 million and above to 10.75 percent from 8.97 percent. It will also raise business taxes by an average of 2 percentage points over four years. The current rate is 9 percent.
Murphy says the deal is “just the beginning” of moving toward a “stronger and fairer” state.
New Jersey Gov. Phil Murphy sent Democratic legislative leaders a new tax revenue offer aimed at enacting a budget before a looming deadline and avoiding a shutdown.
Murphy said in a letter Saturday that he would take off the table his proposal to hike the sales tax. He says he is also accepting a legislative proposal to hike business taxes, but at different rates.
Another big change is on the income tax on people earning $1 million and above. Instead of a 10.75 percent rate on people earning over $1 million, Murphy is now calling for levying that rate on income of $1.75 million.
If the Democratic governor and lawmakers fail to enact a balanced budget before midnight, state government would close.
Lawmakers didn’t immediately respond to requests for reaction.