New Jersey

Progressive think tank urges tax hikes to close budget gaps • New Jersey Monitor

Published

2 years ago

November 14, 2024

Progressive think tank urges tax hikes to close budget gaps • New Jersey Monitor

New Jersey should adopt a host of progressive tax changes to generate nearly $4 billion in revenue to bridge structural deficits over the coming years, including new tax brackets for millionaires, an expanded sales tax, and a revived estate tax, a new report from a left-leaning think tank urges.

The report from New Jersey Policy Perspective calls for the state to levy higher income taxes on multimillionaires, undo a Christie-era sales tax cut, and apply sales tax to a range of services excluded under current law to bridge a gap between state spending and state revenues that threaten to drain New Jersey’s surplus over the coming years.

“New Jersey has to start raising more revenue, and it’s important to raise revenue in a fair way. We have to make sure that those who have wealth are paying more and those who are working and middle class are not facing as much fiscal burden to continue to live in New Jersey,” said Peter Chen, the report’s author and a senior policy analyst for the think tank.

New Jersey’s current budget calls for the state to spend $2.1 billion more than it collects through taxes and other sources of revenue, and that gap is set to expand next year when revenue from a recently enacted surcharge on some highly profitable businesses will move from the general fund to NJ Transit.

Rowan University’s Sweeney Center for Public Policy in June warned the deficits threaten to drain New Jersey’s surplus in the coming years under most economic conditions, noting the state’s reserves would be significantly reduced even under their most optimistic forecast.

It’s unclear whether New Jersey lawmakers will seek to raise taxes when they enact a new annual budget in June.

Trenton’s Democratic caucuses launched an affordability kick and have resisted tax increases following legislative losses in 2021, and it remains to be seen whether they will reverse course with gubernatorial and Assembly elections on the ballot next year.

Sen. Tony Bucco said the Legislature should follow the GOP’s recommendation to “cut wasteful spending.” (Dana DiFilippo | New Jersey

A spokesperson for Assembly Speaker Craig Coughlin (D-Middlesex), who has championed his caucus’s affordability push, declined to comment. It’s unlikely the proposals will win support from Republican lawmakers.

“This is just another report to justify the progressive Democrats’ tired playbook of increasing fees and taxes on New Jerseyans. At first glance, it suggests identifying new revenue streams that include raising the state sales tax that will undoubtedly leave New Jersey more unaffordable,” said Sen. Tony Bucco (R-Morris), the Senate’s minority leader. “Instead, we should be focusing on reforms that Republicans put forth to cut wasteful spending and give New Jerseyans the relief they deserve.”

The think tank’s report urges legislators to create new income tax brackets for the state’s highest earners — 12% for those making over $2 million, 13% for those making more than $5 million, and 14% for those with more than $10 million in income — to boost collections.

At present, New Jersey’s highest marginal rate of 10.75% is applied to all residents with more than $1 million in income. The report estimates the new brackets would boost collections by $1.2 billion, though it urges expansions to the state child tax credit and earned income tax credit that would decrease income tax collections by $432 million.

Because the pool of taxpayers shrinks in higher income brackets, revenue from taxes on multimillionaires can be volatile year-to-year. Chen said enacting new brackets alongside other tax increases could defray volatility risks.

“The idea here is if we can look at the revenue across the spectrum, we can limit the degree to which volatility in any one tax is going to be affected,” Chen said.

The report says New Jersey should undo a cut enacted under Gov. Chris Christie that brought New Jersey’s sales tax rate to 6.625% — it used to be 7% — and expand the tax to apply to a range of professional services like those provided by attorneys, accountants, and architects, among others.

Raising the sales tax back to 7% would boost revenue by roughly $700 million, the report says, and expanding the tax to services could raise far more. The report’s authors cautioned those gains would be difficult to predict and depend on which services were subject to taxation.

Including more services could make the state’s sales tax more progressive because a larger share of wealthy residents’ spending goes toward services than toward goods, said Nicole Rodriguez, the think tank’s president.

“For example, rather than buying a lawnmower, they’re hiring a landscaper to work on their lawn. Part of this is not only to ensure equity and fairness in how we’re raising revenue but also around being in line, in step with the economy that we’re growing into more and more,” she said.

Applying sales tax to some services could boost bills for low-income workers, but Chen said that impact could be defrayed somewhat by enacting new exemptions or boosting other tax credits aimed at low- and middle-income residents.

The think tank’s other recommendations call for the state to raise a tax on sales of homes above $1 million from 1% to 3% and impose a 5% tax on homes worth at least $2 million.

Those taxes would generate $410 million annually — though collections could change drastically based on activity in the housing market — while impacting only 10% of home sales, the report says.

The report says the state should also require corporations to report income from foreign subsidiaries instead of only those based in the United States, arguing the state’s current business tax structure allows corporations to shield some income from taxation.

Mandatory worldwide combined reporting would generate $888 million in tax revenue each year, the report says.

Business groups would oppose a shift to worldwide reporting. New Jersey Chamber of Commerce President Tom Bracken warned increasing corporations’ tax burden would harm the state’s economy.

“It’s just finding a different way to attack the business community. It’s going to be money out of their pocket whether you do it with a corporate transit fee, whether you do it with taxing their international income, which they have every right to have in place. It’s all money coming out of the same business community,” he said.

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New Jersey

Nightmare at NY Penn as train fire halts NJ Transit, Amtrak service for hours

Published

7 hours ago

May 29, 2026

Press Room

Nightmare at NY Penn as train fire halts NJ Transit, Amtrak service for hours

New Jersey and New York City commuters are facing extensive delays in and out of New York Penn Station Friday, with intensifying ripple effects, after an Amtrak work train car on one of the hub’s tracks caught fire.

The FDNY says it was called to the Midtown scene on 31st Street, between Seventh and Eighth avenues, around 1:30 a.m. Nearly 100 personnel responded. Five civilians were evaluated at the scene by EMS, officials say.

It’s not clear what sparked the fire involving Amtrak’s contractor maintenance vehicles in one of the Hudson River Tunnels. It was knocked down well before 6 a.m., but service on New Jersey Transit, Amtrak, Long Island Rail Road and more was expected to see heavy impacts well into the morning rush, with Hudson River trains operating at reduced capacity. Amtrak said it didn’t expect to lift its suspension until at least noon.

Travel Advisory: Due to unforeseen track and signal maintenance resulting from a now extinguished fire in the New York area, all services traveling south of New York (NYP) are temporarily suspended. This suspension is anticipated to be in place until noon at a minimum. Services…
— Amtrak Northeast (@AmtrakNECAlerts) May 29, 2026
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New Jersey Transit and LIRR also announced delays and cancellations. Cross-honoring and diversion programs were in effect as the situation developed. Complete LIRR service at NY Penn had resumed by around 7 a.m., Friday said, though equipment issues were causing cancellations. Get the latest transit information here.

Video from outside Penn Station showed smoke billowing in the pre-dawn hours, as emergency personnel stood by with stretchers awaiting any potential victims.

Amtrak is investigating the cause of the fire.

“We sincerely apologize for the inconvenience this may cause,” the agency’s latest announcement said, pledging to provide updates as new information becomes available.

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New Jersey

Violence reported at Delaney Hall in N.J. Calls to shut it down are growing

Published

19 hours ago

May 28, 2026

Press Room

Violence reported at Delaney Hall in N.J. Calls to shut it down are growing

How are detainees at Delaney Hall being treated?

A statement issued by DHS said detainees receive comprehensive medical care and all are treated well.

“They are provided with 3 meals a day, clean water, clothing, bedding, showers, soap, and toiletries. Illegal aliens also have access to phones to communicate with their family members and lawyers. Certified dieticians evaluate meals,” the department wrote.

The release accused Sherrill, Booker and U.S. Sen Andy Kim, as well as U.S. Reps. Rob Menendez, Nellie Pou, LaMonica McIver, Frank Pallone and Analilia Majia, of continuing “to peddle falsehoods about ICE facilities,” and “spreading smears about ICE law enforcement and the Delaney Hall ICE facility in New Jersey.”

Sinha said the assertion that individuals being arrested and taken to Delaney Hall are dangerous criminals is false.

“This is an administration that has repeatedly lied to us about what’s going on in immigration enforcement and immigration detention facilities,” Sinha said.

He added while Sherrill does not have the legal authority to enter Delaney Hall unannounced, that fact that she was denied entry is concerning.

“The federal government has denied her repeatedly, and it makes you question, ‘What is the federal government trying to hide?’” he asked. “They have no allegiance to any rule of law or semblance of democracy; they’re trying to rewrite the Constitution for people who are noncitizens.”

On Thursday, Sherrill issued a statement saying the New Jersey Department of Health attempted to conduct a inspection of Delaney Hall, but officials were only allowed to inspect only a limited part of the facility.

“We will review and share the department’s findings from the limited portion it was allowed to inspect, and we will continue to pursue all appropriate avenues for demanding transparency and ensuring humane conditions for the individuals being held at the facility,” she said in the statement. “As I’ve said repeatedly, refusing to provide full access raises serious questions about what ICE is trying to hide from public view.”

Sinha said a hunger strike among those inside the facility is continuing because they are being given spoiled food and inadequate medical care in deplorable conditions.

“People shouldn’t have to starve themselves to make their dignity known; people shouldn’t have to starve themselves to have their rights protected, but that’s what’s happening here,” he said.

Reports of escalating violence

Late Thursday afternoon there were reports of violence escalating within Delaney Hall.

Nedia Morsy, the director of Make the Road New Jersey, an immigration advocacy group, issued a statement saying multiple sources within the facility reported ICE agents attacking detainees and causing serious injuries.

“Right now there are ICE agents inside of Delaney Hall violently beating the hunger strikers,” Morsy said in the statement. “Someone will be killed if no one intervenes and shuts this down. These masked agents are acting as if they’re above the law. This is a modern-day concentration camp, and history will not forgive silence in this moment. We need to shut down Delaney Hall and free everyone inside.”

Resistencia en Accion, another immigrant rights group, also released a statement, calling for violence against detainees to end.

“We express our utmost disgust with the violence perpetrated by Immigration and Customs Enforcement (ICE) agents today, May 28. Reports at approximately 1:40 p.m. reveal that ICE agents attacked the hunger strikers inside with batons and tear gas. Family members outside received calls from inside, confirming that there were people screaming, and according to their loved ones inside, unconscious detainees and blood on surfaces. ICE is the sole responsible actor for the escalation that has led to several wounded people inside and outside this week,” the statement reads.

WHYY News reached out to DHS late Thursday seeking comment about the reports of violence at Delaney Hall. A written statement was emailed to WHYY that said ICE agents had responded to a physical altercation involving detainees.

“In accordance with established ICE policies and their training, staff used the minimum amount of force to safely deescalate the situation,” DHS wrote. “Following the incident, all affected detainees were promptly evaluated by on-site medical personnel and were cleared with no serious injuries.”

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