Murphy included $60 million in excise and sales tax revenue collection from the sale of recreational marijuana in his budget. He said that it would raise $765 million for New Jersey. Senate President Steve Sweeney (D., Gloucester) has thrown cold water on that proposal, citing President Trump's tax overhaul, which reduced a popular deduction in the Garden State.
But if that happens, it'll get taxed: a 25 percent excise tax, plus the sales tax. "Governor Murphy is ready to end the cycle of non-violent, low-level drug offenses holding individuals back".
A budget overview document released in tandem with his address states that "this Administration plans to legalize adult-use marijuana by January 1, 2019". The plan would provide $341 million more for schools and an expansion of pre-kindergarten.
Sweeney, instead, has recently unveiled a plan that would raise the state's corporate business tax rate on companies with income over $1 million to 12 percent from 9 percent.
While Mr. Christie was still in office, many Democrats, including Mr. Sweeney, supported Mr. Murphy's proposal to raise taxes on the wealthy.
Murphy is a former diplomat to Germany, and if there's any tension between him and Sweeney, it's not surfacing in his public statements. Mr. Murphy said that the savings were "imperceptible" to the average resident.
The first-term Democratic governor is announcing those proposals Tuesday in his first budget address to the Democrat-led Legislature.
It also presents a contrast at the federal level with Republicans, who extol tax cuts as drivers of the economy while downplaying the effects on revenue and the budget. "If these are our goals - as they must be - then the only sensible option is the careful legalization, regulation, and taxation of marijuana sales to adults", stated Murphy during his budget address. "Therefore it's not a shock".
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