N.J. tax revenues are shockingly high as we’re slammed by inflation. Here’s what’s behind it all.

New Jersey tax revenues have taken a wild ride over the past two years, and collections for the state’s major taxes are reaching historic highs.

Gov. Phil Murphy’s administration says it expects to collect nearly $47 billion in taxes for the current fiscal year that ends June 30. That is nearly $5 billion above initial estimates last summer and more than $8 billion higher than the pre-pandemic peak in 2019.

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The economic landscape is littered with the carcasses of revenue forecasters whose projections have gone awry,” said James Hughes, a professor and former dean of Rutgers’ Edward J. Bloustein School of Planning and Public Policy.

NJ.com, April 17, 2022