John Reitmeyer | January 18, 2021 | NJ Spotlight |
Senate President: ‘I’m telling you right now, I’m not doing (increased) taxes or fees until (there’s) reform’
Gov. Phil Murphy and legislators enacted a law earlier this month that will allow up to $11.5 billion in state tax breaks to be awarded to businesses within seven years.
In response to the economic downturn and revenue losses triggered by the coronavirus pandemic, they also agreed to hike taxes and issue roughly $4 billion in long-term debt to help sustain the state budget.
On the heels of two recent credit-rating downgrades, Murphy and fellow Democrats who control the state Legislature, have, at least in the short-term, chosen to combat fiscal challenges presented by the health crisis with increased spending and new taxes and tax expenditures.
An improving economy coming out of the pandemic could lift the budget outlook by boosting state tax collections. But whether there will be enough revenue to fully fund all the state’s recent spending commitments over the long term remains an open question.
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