Murphy, Cabinet meet to weigh possible government shutdown

New Jersey Gov. Phil Murphy speaks n in Trenton, N.J., Tuesday, Jan. 16, 2018. (AP Photo/Julio Cortez)

New Jersey Gov. Phil Murphy convened a Cabinet meeting to review preparations for a possible government shutdown amid a budget standoff with lawmakers.

The first-year Democratic governor met with his Cabinet in Trenton Thursday and also weighed in on a legislative counteroffer made on Wednesday.

He says Senate President Steve Sweeney's proposal to start levying the 6.625 percent sales tax on short-term rental properties would squeeze the middle class.

Murphy stopped short of rejecting the offer outright.

Instead, Murphy has been pushing for an income tax hike on people who make more than $1 million a year. He's said he would veto the Democrat-led Legislature's $36.5 billion budget because it does not contain enough tax revenue.

Officials face a Saturday deadline to enact a balanced budget or face a shutdown

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