Today, Americans for Tax Reform (ATR) sent a letter to Senate President Sweeney and New Jersey state legislators urging them to stay strong in opposition to Governor Phil Murphy’s proposed $1.7 billion in tax hikes.

“New Jersey residents are already being crushed by some of the highest taxes in the country,” said Grover Norquist, President of Americans for Tax Reform. “By pushing for more taxes, Governor Murphy is showing he can’t manage the budget. The legislature needs to lead and say no before the state becomes more unaffordable and more people are driven out.”

ATR opposes Governor Murphy’s sales tax hike, adding sales tax to sharing economy services, expanding the state’s internet sales tax, the increase in the millionaire’s tax hike, an industry-threatening wholesale tax on vaping, increasing the wholesale tax on tobacco products, and a “fee” on carried interest.

“Governor Murphy talks about strengthening New Jersey, but his tax hikes will only weaken the state by passing the bill for Trenton’s unaffordable policies to overburdened taxpayers,” Norquist added. “Before state leaders can pursue policies that make New Jersey more affordable and attractive as a place to build a future, lawmakers must stop making the tax climate worse.”

Tax hikes proposed by Governor Murphy include:

  • A regressive, $581 million sales tax hike would hit low-and-middle-income residents the hardest, and make life more expensive for every New Jersey resident.


  • Expanding the sales tax to sharing economy services like Uber, Lyft, and Airbnb, making them more expensive for hard-working New Jerseyans who will foot the bill.  


  • Expanding the state’s internet sales tax to apply to out-of-state merchants is yet another policy that would cost Garden State residents, making online shopping more expensive. By making small stores that have no presence in New Jersey remit taxes, it breaks down protections against interstate taxation, and forces online retailers to take on additional processing burdens.


  • A $765 million “millionaire’s tax” hike will push more high earners and job creators out of the state. It was Governor Murphy himself who voiced concerns about federal reforms to state and local tax deductions leading wealthier taxpayers to pay more, and move out of state. Especially now that the IRS says it will not allow state charitable entities as a tax workaround, the Governor should listen to his own concerns.


  • Governor Murphy has proposed taxes on vaping products at rates that seem to have been made up out of thin air. The unserious policymaking stands in stark contrast to the very serious consequences as vaping stores could be forced to close should these taxes pass.

Read ATR’s letter HERE.