NJ governor calls for higher taxes, more money for schools

TRENTON, N.J. (AP) -- New Jersey Gov. Phil Murphy wants to raise the state sales tax and extend its reach, hike income taxes on the wealthy and legalize recreational marijuana.

He also wants to increase the state's contributions to public education by about 8 percent, or $1 billion.

The first-term Democratic governor is announcing those proposals Tuesday in his first budget address to the Democrat-led Legislature.

Murphy wants to raise the sales tax from 6.625 percent to 7 percent and include ride-sharing services and accommodations like Airbnb.

Under his budget plan, incomes over $1 million would be taxed at 10.75 percent, up from the top bracket of 8.97 percent.

His proposed spending plan of $37.4 billion is roughly 5 percent higher than former Republican Gov. Chris Christie's final-year proposal.