Trenton, NJ – If taxes are your number one concern, then New Jersey isn’t the state for you. It was the message Governor Phil Murphy rode into Trenton and he’s riding that same messaging into the sunset as his final days in office wind down.
This week, the governor was standing up to Republicans who want to start cutting taxes, in particular, the sales tax. He says cutting the sales tax is nothing more than a gimmick.
NJ Governor Phil Murphy talking about taxes, a $10B loss specifically lowering the sales tax and complaing about it
— Wake Up NJ 🇺🇸 New Jersey (@wakeupnj) December 27, 2025
All while the Democrats WASTE over $7B a year on illegals, $1B on Liberty 🗽 Park, Over $700M on SNAP waste, $850M on DEI, hell over $22B a year is spent on… https://t.co/yHCwVA6zJs pic.twitter.com/PoSh6RcD9J
Governor Phil Murphy rejected a proposal to cut New Jersey’s sales tax, calling the idea “irresponsible” and warning it would deepen the state’s financial shortfall. Speaking about Senator Anthony Bucco’s recent bill to reduce the sales tax, Murphy said the move would undo years of fiscal planning and deprive the state of critical revenue.
Murphy argued that the 2016 reduction from 7 percent to 6.625 percent by, enacted under his predecessor Governor Chris Christie, alongside a gas tax hike, has already cost the state nearly $10 billion in lost revenue.
“That cut down from 7% to 6% change has cost the state since that action, bearing down on $10 billion,” Murphy said. “That’s $10 billion, believe me, we could use for more property tax relief, for more relief of utility bills.”
Or, maybe it could be used for a new fleet of gas-guzzling SUVs for the next governor, as New Jerseyans are being led down a path of electric vehicles.
While noting there are “two legitimate sides” to the argument, Murphy said a new reduction would be financially reckless.
“He’s a good friend,” Murphy said of Bucco, “but we can’t afford that.”
The governor’s stance has drawn backlash from taxpayer watchdogs and online advocacy groups, including the WakeUpNJ DoGE community, which has accused state leaders of ignoring widespread fiscal waste while warning against tax cuts.
Critics point to what they claim are billions in questionable annual expenditures, including more than $7 billion on programs for undocumented immigrants, $1 billion in Liberty State Park redevelopment costs, $700 million in Supplemental Nutrition Assistance Program waste, $850 million devoted to diversity, equity and inclusion initiatives, and over $22 billion combined for the ANCHOR and Stay NJ property relief programs.
Opponents argue that such spending undermines Murphy’s claim that the state cannot afford tax relief. Murphy maintains that preserving the current sales tax rate is vital to ensuring long-term fiscal stability and protecting funding for essential services.