New Jersey Gov. Phil Murphy called for a millionaire’s tax and ethics reform in his annual State of the State address

TRENTON -- Gov. Phil Murphy on Tuesday called for ethics reform and strengthening New Jersey’s economy in his second State of the State address, saying lawmakers "must build an economy and a state that works for every New Jersey family.”

Murphy, in his joint address to both Houses of the New Jersey Legislature, focused on a number of economic issues, including a proposed tax on millionaires and a new jobs program. He also said he will create a new office focused on reducing health care costs and making insurance more affordable to New Jersey residents.

Murphy also called for a package of ethics reforms to reduce the influence of special interests in state politics and reforms to attack the “pernicious sexism and abuse that still creeps across these hallways, at conferences, and in meeting rooms” in Trenton.

“I am calling for us all to work together to tear down the existing system and replace it with one that treats everyone with equal dignity and respect,” Murphy said. “I am calling on my partners in government to join me in this mission.”

Workplace culture and sexual harassment have been hot topics in Trenton. On Monday, Murphy signed five bills into law that would make New Jersey government workplaces safer and more responsive to harassment claims.

“We all must be disgusted by the stories which women... tell of their mistreatment by men who felt empowered, if not protected, by Trenton’s culture,” Murphy said. “For too many years, too many people in power have turned their eyes away from behavior they knew was not only happening, but was pervasive in Trenton.”

Last month, State Sen. Loretta Weinberg formed an ad hoc committee to address what she calls the “toxic climate of misogyny, harassment, and sexual assault” in state politics.

This comes after the Newark Star-Ledger detailed claims by at least 20 female staffers that they were sexually harassed, assaulted, or groped as recently as last year while working in state government or political campaigns. Some incidents happened at two popular political gatherings, hosted by New Jersey’s Chamber of Commerce and the League of Municipalities.

In 2018, a special legislative committee held hearings after a top staffer to Gov. Phil Murphy, Katie Brennan, accused a former fellow Murphy campaign aide of raping her in 2017. The aide, Albert Alvarez, lost his job in the Murphy administration after the accusations became public.

Murphy also called for stronger financial disclosure laws and reforms to the state’s “pay-to-play” regulations, saying lawmakers "must do more to gain the trust of our residents and decrease their rightful cynicism.”

His speech was the same day the U.S. Supreme Court is debating whether two aides to former Gov. Chris Christie committed fraud when they helped closed down multiple lanes to the George Washington Bridge as political retribution against a New Jersey mayor.

Murphy also recommitted to passing a millionaire’s tax, an initiative that has proved elusive for the progressive Democrat.

“I am not giving up the fight for a millionaire’s tax,” Murphy said, to a rousing applause. “A millionaire’s tax can ease the property tax burden on millions of middle-class families and seniors, and do more to help fund our public schools...millionaires and corporate CEOs made out just fine in the last recession – and, I assure you, they will again when the next one hits.”

Two times Democrats in the state Legislature have stalled his attempts to advance the initiative, saying New Jersey must first enact spending reforms. Murphy, a millionaire himself, wants to raise the tax on incomes over $1 million from 8.97% to 10.75%, potentially netting the state $450 million, according to Murphy administration budget estimates.

GOP leaders have honed in on Murphy’s millionaire’s tax and made it the centerpiece of their criticisms of his tenure.

“The millionaires tax is just another income tax,” said Doug Steinhardt, chairman of the NJ GOP. “It doesn’t matter what fee, what tax you’re talking about. Folks in New Jersey understand taxes always come home to roost in the homes of the middle class.”

Murphy also touted numerous accomplishments from his first two years in office. Murphy signed a law gradually phasing in a $15 an hour minimum wage. He also implemented laws meant to curb illegal firearm sales and reduce gun suicides, while restoring funding for Planned Parenthood and enacting measures to combat gender inequity and promote equal pay in New Jersey workplaces.

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