Murphy Abandons Push for N.J. Millionaire's Tax in Next Year’s Budget

(Bloomberg) -- New Jersey Governor Phil Murphy said his proposed millionaire’s tax won’t be part of the budget for fiscal 2020.

Murphy said he will meet the state’s constitutional deadline to pass a budget by July 1. The governor told reporters he won’t shut down the government due to his disagreements over the spending plan with fellow Democrats in the legislature .

“Closing state beaches and parks only punishes the innocent,” Murphy said to reporters on Thursday in Secaucus.

The legislature approved a $38.7 billion budget that scrapped Murphy’s millionaire’s tax. Murphy had said the levy would help fund education, transportation and health care, and relief from the highest property taxes among U.S. states.

“Between now and Monday there will not be” a millionaire’s tax enacted, Murphy said. He said, though, that he’ll continue to press for "tax fairness” in the next fiscal year.

“If anything, our megaphone will get louder,” he said.

The governor declined to say what he’ll eliminate from the lawmakers’ proposal to make it square with the revenue he must certify. He promised, though, to give New Jersey Transit a net budget increase of $75 million, as lawmakers wanted, rather than the $25 million he had proposed.

Last year, New Jersey averted a shutdown when Murphy and legislative leaders agreed to a higher income-tax rate on those making in excess of $5 million rather than $1 million.

To contact the reporter on this story: Elise Young in Trenton at eyoung30@bloomberg.net

To contact the editors responsible for this story: Flynn McRoberts at fmcroberts1@bloomberg.net, Stacie Sherman, William Selway

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