New Jersey governor signs budget boosting taxes on companies making over $10 million

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New Jersey Governor Phil Murphy has inked a new budget deal, which will raise taxes on companies that earn more than $10 million annually.

Saturday, June 29, 2024 2:42PMNew Jersey Democratic Gov. Phil Murphy signed a $56.6 billion budget moments before midnight Friday, hiking taxes on high-earning corporations to help the state's transit agency while spending billions on education and other programs.

For taxpayers, the spending plans includes billions for K-12 education, property tax relief, public pensions and a host of other programs. For businesses making over $10 million a year, the budget carries a tax increase, hiking the top corporate rate to 11.5% for those firms, up from 9%. The spending plan is up about 4% from the budget Murphy signed last year, a modest increase compared to past years.

The budget pays for all aspects of state government, from the executive departments to public universities. The Legislature this year passed a 67% pay raise for lawmakers, their first since 2002, which goes into effect in 2026. It includes a number of expenditures - sometimes called Christmas tree line items since they're seen as gifts for specific constituencies.

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