Murphy’s Bloated Budget and Tax Hikes: A Burden New Jersey Can’t Afford

By Councilman Giuseppe Palmeri

Governor Phil Murphy’s latest budget proposal for Fiscal Year 2026 is another example of reckless spending and misguided priorities that will hit New Jersey residents right where it hurts—our wallets. The proposed $58.1 billion budget is not only the largest in state history but also comes with $1.2 billion in new taxes, making it clear that Trenton’s answer to every fiscal challenge is the same: tax more, spend more, and ignore the consequences.

Since taking office, Murphy has overseen a nearly 60% increase in state spending. This year’s proposal includes massive allocations such as $7 billion for pension payments, $4.3 billion for property tax relief, and $815 million for NJ Transit. While these investments may seem beneficial on paper, the reality is that they are being funded by unsustainable tax increases rather than much-needed reforms.

Murphy’s plan keeps a $6.3 billion surplus as a cushion against potential federal cuts, but why should New Jersey taxpayers be forced to cover the cost of poor planning? Instead of making tough choices to streamline government and eliminate waste, the administration is once again asking hard-working residents to foot the bill.

$1.2 Billion in Tax Hikes—On Everything!

To pay for this ballooning budget, Murphy has proposed tax hikes across multiple sectors, impacting businesses and consumers alike. The proposed increases include:

• Higher taxes on online gaming and sports betting, hurting an industry that has created jobs and contributed significantly to state revenue.

• A property sales tax hike, which will make homeownership even less affordable in an already high-cost state.

• Increased cannabis taxes, stifling a growing industry that was promised as an economic driver.

• Higher cigarette and alcohol taxes, another burden on working-class residents.

And let’s not forget NJ Transit, which is receiving $815 million in funding while still planning to raise fares by 15%. Taxpayers are being asked to subsidize a failing transit system while riders are expected to pay more for a service that continues to decline in reliability.

At a time when people and businesses are fleeing New Jersey due to high taxes and cost of living, this budget proposal doubles down on the very policies that have driven them away. The answer to fiscal challenges should be responsible spending and structural reforms, not relentless tax hikes and bloated government.

New Jerseyans deserve leadership that will prioritize affordability, reduce wasteful spending, and provide relief to taxpayers—not one that continuously reaches deeper into our pockets to fund unsustainable expenditures. It’s time for Trenton to wake up and realize that the residents of this state can’t afford to keep paying for its fiscal irresponsibility.

If this budget moves forward as proposed, expect more businesses to leave, more families to struggle, and New Jersey’s affordability crisis to worsen. The people of this state deserve better than Murphy’s tax-and-spend agenda. It’s time to demand real fiscal responsibility.