Governor’s Stronger and Fairer Economy Can’t Overlook Fiscal Elephant

Governor Murphy's State of the State address highlighted important investments, but overlooked a looming budget shortfall.

Published on Jan 9, 2024 in Economic Justice, Tax and Budget

Today, Governor Phil Murphy delivered his sixth annual State of the State address, where he focused on ways to make New Jersey the best place anywhere to raise a family. The speech highlighted the critical role of state government in building an economy that works for everyone, but the governor did not address how the state would pay for these investments after lawmakers allowed the Corporate Business Tax surcharge to expire at the start of the year. In response to the address, New Jersey Policy Perspective (NJPP) released the following statement.

Nicole Rodriguez, President, NJPP:

“There’s a lot to like in Governor Murphy’s address, from protecting rights and freedoms to promoting affordability and economic security. This approach to governing recognizes the critical role of state government in making New Jersey the best place to live, go to school, raise a family, or start a business. The last six years are more than enough proof that this model works, and that we can strengthen public services and have a booming economy at the same time.

“But just as the governor attributed this success to confronting New Jersey’s financial challenges, his address overlooks one giant elephant in the room that could unravel it all. As it stands, New Jersey is not raising enough revenue to balance its current budget, and the state’s financial outlook is made worse thanks to a new billion-dollar corporate tax cut that just went into effect.

“By scrapping the corporate tax surcharge for big players like Amazon and Walmart, state lawmakers jeopardize the future of the same investments the governor celebrated in his remarks. To keep up the momentum and build an economy that is truly stronger and fairer for all, Governor Murphy and the Legislature must undo this tax cut for the most profitable corporations in the world.”

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