Michael Testa, a senator from New Jersey, said that Governor Murphy’s plan to implement tax hikes through the budget process without legislative approval is unconstitutional and may face legal challenges. The statement was made on X.
“Gov. Murphy is trying to push tax hikes through NJ’s budget using statutory law, but he can’t do that without separate legislation passed by the Legislature,” said Testa. “My colleagues & I are seeking legal opinions because if the Governor moves forward anyway, it’s simply unconstitutional.”
New Jersey’s budget process for 2024 has been influenced by Governor Phil Murphy’s proposals for new taxes on high-income earners and corporations. According to NJ Spotlight News, this has sparked debate over balancing funding for state programs with concerns about New Jersey’s high tax burden. The ongoing budget negotiations have made tax policy a central issue between the governor and the state legislature.
According to the New Jersey Department of the Treasury, recent state budgets have included proposed tax increases on corporate profits, income above $1 million, and select business services. The Fiscal Year 2025 budget projects over $1.2 billion in new tax revenue, although some proposed increases were revised or rejected by lawmakers.
A report from the National Conference of State Legislatures notes that New Jersey requires only a simple majority in both legislative chambers to enact tax changes. This process is less restrictive than in states like California, which mandate supermajorities for tax hikes.
Testa is a Republican New Jersey state senator and attorney who chairs the Senate Judiciary Committee. He is known for his opposition to tax increases, support for business-friendly policies, and advocacy of fiscal restraint and government accountability, as profiled by Ballotpedia.
