NJ Has More Tax Money Now Than Ever. Why?

March 17, 2022 | njspotlightnews.org

Two years after predicting the coronavirus pandemic would trigger historic revenue losses, Gov. Phil Murphy is instead once again rewriting his budget projections to account for soaring tax collections.

NJ SEED: In 2020 the Murphy Administration pushed through tax hikes still on the books. The federal government’s COVID relief and stimulus aid meant direct aid to states and individuals. Without voter approval the state borrowed $4 billion that must be paid off. A recovering economy has produced higher than expected tax revenues. All combined to swell the state’s coffers. The question before the legislature is whether to expand existing programs and add new ones thereby taking on future obligations when revenues may be less OR should lawmakers, as some propose, provide tax relief to state residents feeling the pain of inflation.