The Assembly and Senate today gave final legislative approval of a nine-month budget for FY 2021 along with about $700 million in tax increases, $4.5 billion in borrowing for operating expenses, and increased spending unrelated to the pandemic.
Gov. Phil Murphy has indicated that he will sign the $32.7 billion spending plan for the shortened fiscal year, which will begin Oct. 1. The plan passed in party-line votes—25-14 in the Senate and 51-27 in the Assembly.
NJBIA criticized the budget in a statement issued shortly after passage.
“A budget that settles on needless borrowing, excessive spending and completely avoidable tax increases is yet another major hit to New Jersey’s business community, which again is expected to pick up the costs of the bill,” said NJBIA President and CEO Michele Siekerka. Only this time, businesses are scratching to hang on in a COVID-19 impacted economy. Enough is enough.”
The budget also relies on tax increases passed separately, including:
- an increase of income tax rates from 8.97% to 10.75% on income between $1 million ad $5 million bill (A-10/S-2949);
- an extension of the Corporation Business Tax surcharge of 2.5% until the end of 2023; and
- an increase assessment on HMO plans assessment from 3% to 5% net written premiums (A-4722/A-2935).
The additional taxes will pay for a new tax rebate program providing up to $500 to middle-income taxpayers with dependents, lower income families and single parents, a higher budget surplus and a number of what are called “Christmas tree” spending items that pay for local projects at the request of individual legislators.
looks like many people will be leaving our great state.
They redistributed income as a ” rebate”, authorized. borrowing. without a citizens approval – borrowing. does not create a surplus, and the only thing that NJBI can due is express disapproval – how about starting. litigation.
You all voted these guys in. When do you wake up?
You are correct, those who are wealthy will leave. Can we hope Murphy will go with them.
I own a small business. My “filing fee” for my LLC went from 50.00 to 75.00. My business is in the dumper, thanks to Murphy. I’ve already, “picked up the bill”.
Kick us when we’re down, why don’t ya?
You wonder why businesses/people are leaving NJ….
The Goldman Sachs guy doesn’t have a clue how to run a business!
Please drain the swamp!!!!!
It’s not a budget if your spending increases
Murphy and other Democrats are doing this knowing they are going to bankrupt the state just like CA & Republicans will leave and big Companies will leave . Knowing it will stay Blue n go down like the other BLUE STATES.. Sad because I’m born here and many of my Seniors are born here and HAVE TO LEAVE , because WE CANT AFFORD TO STAY
When are all you liberal Democrats going to stop voting these crooks in. If we don’t clean the swamp there will be nothing left to NJ. I wish Governor Murphy would come to my barely hanging on business (which is family owned and over 50 years old) so I could personally throw him out.
What are you doing NJB????? We need help or we’ll all pick up stakes and get out of this terrible place they have created.
TRUMP 2020!!!!!!!