Pushing themselves to the brink of another government closure, Governor Phil Murphy and fellow Democrats agreed on Saturday to An agreement that increases taxes on multimillionaires and companies In order to spend more on public transportation, schools and other services, a compromise was reached a few hours before their constitutional deadline.

Murphy and the legislative leaders proclaimed the agreement as a hard-fought victory. years of fiscal conservatism under Chris Christie. And Murphy got almost all the proposed expenses, according to him, necessary to the return of New Jersey in an era of equality and prosperity.

But as soon as Murphy signs the $ 37.4-billion budget, he will have to face financial challenges demanding tough choices again, with increased payments to retirees and limited leeway for investment of this budget.

Nevertheless, Murphy avoided a potentially costly government closure that could have had embarrassing and lasting repercussions for a first-time governor.

"Today, the era of budget tricks ends and the era of a stronger and more just New Jersey that works for every family is just beginning," he said. Mr. Murphy said by announcing the agreement shortly before 8 pm. not to be stopped. Parks and beaches are open. "

The agreement between Murphy, and Senate Speaker Stephen Sweeney and Speaker Craig Coughlin, followed an afternoon of negotiations and a week of negotiations where both parties Had several times While the general terms of spending in Murphy's budget proposal have never been in doubt, the method of increasing revenues to fund his wish list was fiercely debated by the Democrats in the Legislative Assembly .. Sweeney was opposed to a millionaire tax, while Coughlin fought against the reinstatement of the sales tax at 7 percent.

Disagreement was Intensified over the past few days, with bids, counter-offers and the biggest Democrats leaving Murphy's office in what Coughlin described as a bitter disappointment, Sweeney even compared Murphy to Christie, who played a role in # 39; pouvantail throughout the budget process.

The budget increases the income tax to 10.75% on those who earn more than $ 5 million and taxes businesses that earn more than $ 1 million to a new rate of 11.5% , against 9% currently, Murphy said Saturday

The sales tax does not increase.

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"It's been a hell of a trip," says Sweeney, appearing alongside Murphy's governor's office. "In the end, we have a budget that will repair our schools and advance this state."

Murphy and the legislative leaders had all agreed for months that whatever they conclude, they would need However, they did not agree on the question of who would get increases from Tax and how much these people would pay more.

Murphy had campaigned by promising to raise the income tax cap to 10.75 percent for those who earned more than $ 1 million. An increase in sales tax has been raised, bringing the rate to 7%, which has been the case for years before being lowered recently.

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Sweeney refused to increase the number Income tax despite doing it five times over the years. Sweeney argued that President Donald Trump's tax reforms made this untenable and that corporations, whose federal taxes were cut, should pay more to the state than to high-income earners.

Meanwhile, many feared they would run for reelection next year.

Murphy, as he has since tabled the budget in March, called the tax increase an issue of equity and necessary to sustain the expenditures that were needed after years. neglect [19659006"Cen'estpasunsecretqueNewJerseyfaitfaceàdevraisdéfisIlsn'ontpasétécréésdujouraulendemainetilsneserontpasrésolusdujouraulendemainMaisils'agitd'unpremierpasimportant"adéclaréMMurphyJen'arrêteraipasdemebattrepourrendrenotrerégimefiscalpluséquitableetjen'arrêteraipasdemebattrepourquenousfassionslesinvestissementsquenotreavenirexigeNousvenonstoutjustedecommencercevoyage"

in addition to the significant expenditures on education and public transport, the budget restores a reduction in the Homestead property tax program and fosters Murphy's plan to provide tuition fees.

The legislature is yet to approve the agreement and its tax increases, and legislators planned to work on Sunday. Murphy said that he wants to sign a budget "as soon as humanly possible."

"And because we have this agreement, under my authority as governor, I will not declare a stop in the interim," he said. Throughout the clash, Mr Murphy announced that he was ready to close the state government and warned on Friday the casinos and racetracks that they might be forced to close with state offices, parks and beaches. The New Jersey government should have shut down, which would have been the second consecutive year for residents to shut down state offices. and they would have been excluded from public beaches and parks before the holidays of 4 July.

New Jersey is the latest state of the union to reach an agreement on the budget

Email: racioppi @ northjersey. com and carlin [email protected]

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