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Analysts Believe NJ Lawmakers Would Approve Murphy's Tax Cuts

Democratic gubernatorial nominee Phil Murphy

Political analysts believe it's likely Democratic gubernatorial nominee Phil Murphy's proposed tax increases will be approved if he's elected and Democrats maintain control of the New Jersey legislature.

Nearly half of the $1.3 billion Murphy's tax hikes are expected to raise would come from a millionaires' tax.  Governor Christie has vetoed five attempts by Democrats to impose that levy. Rider University political science professor Ben Dworkin believes Democrats will get it done if Murphy becomes governor.

"Steve Sweeney, who most people expect will remain the state Senate President, has said that this is going to be one of the top bills if not the first bill that they will consider. So, no I don't it's going to be comparable to a situation like we saw with Republicans in Washington with the health care."

Fairleigh Dickinson University political science professor Peter Woolley expects the legislature would also go along with Murphy’s plan to close a tax loophole that allows corporations to shift profit made in New Jersey to lower taxed states.

“People generally dislike any provision that’s described as a loophole. So I think changes are good that public opinion will back an increase on corporations whether it’s a loophole or some other method.” 

Seton Hall public affairs professor Matthew Hale says it’s hard to know if the state would get the $300 million in tax revenue Murphy expects from legalizing and taxing marijuana since legalization of recreational pot could face some resistance.

“There is a revenue stream that comes from marijuana. It’s not something that’s going to happen overnight, something that would take a while to develop. But we do make a lot of money off of selling alcohol. So eventually it’ll probably happen.”

While Murphy wants to raise taxes to increase funding for schools and the public employee pension system, Republican gubernatorial nominee Kim Guadgno has been focusing on her plan for property tax cuts.