A week before New Jersey Governor Phil Murphy proposes his first state budget, the leader of the state Senate has unveiled a plan to raise taxes to provide more money for education.
Senate President Steve Sweeney wants to impose a tax surcharge on corporations that make more than a million dollars in profits in New Jersey.
He says that would raise about $657 million and be just a portion of the money those companies will save from changes in the federal tax code.
“They’re going to benefit by $2.9 billion next year. So I only think it’s fair that corporations like that, that are profiting from the state of New Jersey, share in that windfall.”
Sweeney want the bulk of the money from the proposed surcharge to be used for special education.
Governor Murphy says the plan has some appeal, but he doesn’t consider it to be an alternative to his push for a tax surcharge on millionaires.
“I don’t see it an alternative. Perhaps as an additional weapon at our disposal. But I love the creative thinking that’s coming from any corner. We’re going to give that some more thought absolutely.”
Some Republican lawmakers say either tax hike would make New Jersey less competitive with other states.
Assembly Minority Leader Jon Bramnick is among Republican lawmakers who believe any tax hike is not the way to go.
“When you send any sort of message out where you’re raising taxes, it simply adds to this chilling effect of companies coming to New Jersey. The better option is to look to reduce spending, not increase taxes.”