The federal law creates “a significant complication” for Murphy’s campaign promises, said Marc Pfeiffer, assistant director of the Bloustein Local Government Research Center at Rutgers University. “I’m not sure how he solves that particular problem.”
Other high-tax states are also considering their options. New York Gov. Andrew Cuomo has proposed swapping the state’s income tax on workers for a payroll tax paid by companies. In New Jersey, it is unclear what a restructuring of the tax system would look like or if it is a realistic goal.
“There’s a political-level response that gets made, but when you start getting into the weeds of dealing with what is in fact an obligation on property owners or taxpayers, that schools or counties or municipalities need their funding, there are some interesting challenges,” Pfeiffer said.
