by Andrew Wyshner ’18, Commentary Editor

Phil Murphy’s proposed economic policies, along with Trump’s tax plan, threaten to double or triple the effective tax rates for people living in New Jersey. Unfortunately, this is not speculation or simply a possibility; it is an inevitability. Phil Murphy has not proposed any plan to lower New Jersey’s absurdly high property taxes, and he aims to effectively raise taxes on firms by closing tax loopholes. This would continue the growing trend of corporations leaving New Jersey, as well as forcing many individuals to leave the state because of the effective property tax increase. New Jersey is bound for an inevitable recession if Murphy institutes the policies he campaigned on.

Trump’s tax plan does, on average, lower taxes for every American. However, for New Jersey and other states that voted against him in 2016, the tax plan eliminates a tax break for property taxes. As a result, the property taxes for the states that voted against Trump will increase greatly. Trump’s plan, while hurting New Jersey and potentially crippling to many individuals in the state, is a clever plan that will make the Democrat representatives from blue states appear to fail their constituents, causing a rightward shift in the political orientation of these states. Mr. Goldfischer commented on the election, saying, “There is an opportunity for a new beginning with Governor-elect Murphy about to begin his tenure; opportunity for non-partisan inclusiveness toward moving New Jersey forward. However, if Mr. Murphy is intent on only pushing his agenda, and funding that agenda with punishing new taxes on the citizens of this state, he is bound to follow in the footsteps of former Goldman Sachs colleague and failed Governor, Jon Corzine. In the words of the renowned Winston Churchill, ‘A nation to try to tax itself into prosperity is like a man standing in a bucket trying to lift himself up by the handle.’ We hope for the best while we wait and watch.” For all of us living in the state, Murphy’s agenda would not simply result in a small tax increase from the federal government or a property tax increase from the state government, but a lethal combination that will drive people and jobs outside New Jersey’s borders. Senior Elaina Kwiatkowski agrees, saying, “His election is one of the worst things that could have happened to our state considering we already have the highest real estate taxes in the nation and he’s just going to make it worse.” Murphy’s election has catastrophic implications for our state, and his regime threatens to increase property taxes to an unprecedented level.

In addition to the inevitable tax increases in the Garden State, Murphy’s proposed increase to the minimum wage will work against New Jersey businesses and harm the economy. In my opinion, a New Jersey led by Phil Murphy is dangerously tempting the Laffer Curve and a recession is a real danger. The Laffer Curve stipulates that at a certain point, an increase in taxes causes a decrease in tax revenue because it causes individuals and firms to pay a higher percentage of their income for every dollar they get. Murphy proposes to raise the minimum wage to $15, and, while for some this will cause a raise, it will not cause a raise for all. Corporations simply cannot afford to pay every unskilled worker $15. In a perfectly competitive capitalist economy, profit margins for individual franchises are razor thin. For example, while you may view Dunkin Donuts as a large, nationwide corporation, each branch is owned by an individual. The individual owning the franchise must pay dues to the parent corporation for the naming rights and the products, and must also pay the workers. As a result, a $15 minimum wage would force the employers to fire people and assign much more work to every remaining worker. A $15 minimum wage helps no one.

Murphy’s proposed policies will drive away large corporations and cause wealthy individuals to leave the state for the decrease in taxes available in Pennsylvania. And again, New Jersey loses more money. Phil Murphy is not simply another politician who plans to make small changes that do not affect the average person. He is going to cripple New Jersey and its entire economy.