Lawmakers Reject NJ Gov. Phil Murphy's Taxes – Except For 1

Lawmakers say they're ready to release a budget that will nix Gov. Phil Murphy’s proposal for a millionaire's tax, as well as four other fee increases that his administration has proposed.

Patch has learned that the state Legislature will release a $38 billion on Monday that will only increase taxes paid by HMOs, but will not raise fees on bear hunters, corporations, gun owners and opioid manufacturers.

The lawmakers' plan could get a vote by the full Legislature by Thursday. The budget also calls for a number of spending cuts and takes money from the governor's rainy day fund. Specifics on the funding cuts and other financial figures were not available at press time.

Murphy is offering New Jersey residents more money if they agree to his proposed millionaires tax. But no amount of money may prevent what seems inevitable: A government shutdown by the end of the month, when the new fiscal budget year starts.

Read more: NJ Government Shutdown Looms As Gov. Murphy Offers Tax Hike Deal

The budget plan was first reported by NJ Advance Media.

Murphy and Senate President Stephen Sweeney seem to be at an impasse on the millionaire's tax issue, even as the governor has unveiled details of his proposal to deliver $250 million in additional property tax relief directly to more than 2 million New Jersey tax filers.

The additional relief, Murphy said, is contingent on passage of legislation increasing the tax rate on those earning more than $1 million per year, which would affect approximately 18,000 in-state residents and 19,000 non-state residents.

“The math is pretty simple, as is the logic,” said Murphy. “This is about tax fairness. It’s about answering a simple question: ‘Whose side are you on?’ We stand with New Jersey’s hard-working middle-class, and those striving to join them."

Sweeney, however, has not taken the bait, and he's even dug in his heals a bit, suggesting that the state Legislature will start overriding the governor if Murphy continues to veto legislative priorities.