As Murphy expresses sympathy for small businesses impacted by Ida, Republicans blast his plans to wallop a new payroll tax increase

The Murphy administration will begin collecting increased payroll taxes from employers starting in October as its preferred solution to replenishing New Jersey’s Unemployment Insurance Fund.

Since March, Senate and Assembly Republicans have advocated for Governor Murphy to accept an alternative plan that would prevent the economic harm, business closures, and job losses that will result from the unnecessary tax increase.

Republicans have proposed stabilizing the UI Fund with billions in federal pandemic relief funds already delivered to the State that have yet to be allocated or utilized, a solution employed by nearly 30 other states that New Jersey could easily adopt.

While appearing for a photo op at a tornado-damaged neighborhood on Thursday, Governor Murphy said, “We keep all of the victims, both individuals, families, small businesses on Main Street, in our prayers. Again, we will not relent, we will stand by the sides of everybody who has been impacted by this in New Jersey until we get back on our feet.”

“Shortly after telling battered business owners they’re in his prayers, Governor Murphy will order them to open their wallets and pay more to the government,” said Senator Declan O’Scanlon, a member of the Senate Budget & Appropriations Committee. “It’s hypocritical beyond belief, especially when it’s entirely unnecessary.”

Republican legislators have now circulated a petition to their Democrat colleagues that would constitutionally require the governor to call a special session of the Legislature to adopt legislative solutions to prevent the payroll tax increase and restore stability to the state’s Unemployment Insurance (UI) Fund.

All 14 Republican members of the Senate and 28 Republican members of the General Assembly have signed the petition.

It would only take the signatures of seven Democrats in the Senate and 13 in the General Assembly to provide the majority needed in each house to force Governor Murphy to call a special session of the Legislature to stop the tax increase.

“For thousands of employers that barely survived lockdown restrictions, pandemic-related losses, and recent storm and flood damage, the governor’s next hit may be the knockout blow,” said O’Scanlon. “That’s why it’s so important that Republicans and Democrats work together to stop Governor Murphy’s looming business tax increase. If they want to support jobs and businesses in their communities, every Democratic legislator should sign the petition that was delivered to each of their offices to call a special session. It’s the only guaranteed way to stop the next Murphy disaster.”