The Commerce and Industry Association of NJ applauds Gov. Phil Murphy for proposing $1.1 billion in cost savings and urges the administration to identify greater efficiencies and more spending cuts, rather than hike taxes on millionaires to balance the budget.
Gov. Phil Murphy unveiled the details of his $38.6 billion budget proposal for 2020 yesterday, announcing significant spending cuts, including more than $800,000 in health benefit costs. “We hope the governor and his team will do a deeper dive to find additional savings and cut expenses, as opposed to a millionaire’s tax,” said Anthony, Russo, president of the Commerce and Industry Association of New Jersey, a statewide business advocacy organization that represents more than 900 corporate members from every industry sector.
CIANJ applauds the effort to tighten the state’s belt and cut costs by $1.1 billion but questions how the overall spending package will be supported.
“This year’s revenue growth is not meeting expectations and the shortfall needs to be addressed,” said Russo. “We cannot spend what we don’t have – revenue has been disappointing and a tougher look at the state’s spending package must be undertaken.”
The proposed millionaire’s tax would generate $447 million in revenue by hiking the tax rate on this bracket from 8.97 percent to 10.75 percent. This segment of the population already provides more than 40 percent of the state’s income tax revenues. CIANJ fears the millionaire’s tax will spur greater outmigration and further erode the tax base.
“The Governor needs to focus on business and growing our tax base,” Russo said. “He needs to view businesses as partners and that is ultimately how all residents will thrive.”