Movement on both sides in N.J. budget battle as shutdown threat looms

The governor and the legislature are discussing a compromise and deal on taxes.

David Madden
June 27, 2018 - 10:33 am
New Jersey State House, Trenton, New Jersey,

TRENTON, N.J. (KYW Newsradio) — There seems to be some give and take between New Jersey Gov. Phil Murphy and fellow Democrats in charge of the legislature in an attempt to get an agreeable budget passed before a potential government shutdown this weekend.

For his part, Murphy will consider a modified version of the legislature's plan to increase the corporate business tax.

"A CBT that ends in two years and that's really high and would scare businesses, that's not going to work," the governor told reporters at a Newark news conference. "Something that's modest that accomplishes the goal, that has a longer life, is something pretty clearly that we would consider."

Senate President Steve Sweeney has countered with a four-year bump, along with adding the sales tax to seasonal shore house rentals and a doubling of real estate transfer fees on seven-figure homes.

"All these taxes really bother the hell out of me because what we're not talking about is fixing New Jersey," Sweeney said at his own press conference in Trenton.

There still seems to be significant differences, particularly on Murphy's proposed millionaires tax, which he's willing to tinker with but apparently not eliminate. 

Sweeney, who's supported such a tax in the past, now believes it'll force many wealthy people to flee the state.

Without a deal of some sort, things could grind to a halt come midnight Saturday for the second time in as many years.