NJ TRANSIT Train. Photo courtesy of vacant – stock.adobe.com\t\t\t \t\t\t\t\t\t\t\t<\/p>\n
\t\t\tGovernment <\/span><\/p>\n \t\t\t\t\tBy Michele N. Siekerka, NJBIA President and CEO On Mar 27, 2024<\/span> \t Related Articles:<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" The governor of New Jersey broke his pledge by resurrecting a Corporation Business Tax surcharge under a new name to fund NJ TRANSIT as part of his billion FY25 state budget proposal.<\/p>\n","protected":false},"author":6,"featured_media":6247,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[1766,4223,4029,186,4345,2460,33,3399,304,415,2753,28,3331,4344,4054,3480,282,65,1065,4343,3359,1183,618,4100],"class_list":["post-6246","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-other","tag-budget","tag-budget-proposal","tag-budgets","tag-business","tag-business-competitiveness","tag-community","tag-companies","tag-corporate-taxes","tag-funding","tag-government","tag-investment","tag-jobs","tag-news","tag-nj-transit","tag-risk","tag-spending","tag-state-budget","tag-surplus","tag-tax","tag-tax-increase","tag-tax-increases","tag-taxes","tag-top","tag-visit"],"acf":{"keyphrase":"","keywords":"","sourceimg":"","country-category":""},"yoast_head":"\nReport to Members<\/h2>\n
\n\t\t\t\t\tJust eight weeks after the sun went down on New Jersey\u2019s temporary Corporation Business Tax surcharge, Gov. Phil Murphy broke his pledge by resurrecting the levy under a new name to fund NJ TRANSIT \u2013 part of his $56 billion FY25 state budget proposal.<\/span>
\nIn a stunning reversal of his prior public promises, the governor now wants to raise the top corporate tax rate for this state\u2019s largest job-creators to 11.5% \u2013 a move that will saddle New Jersey businesses with the highest corporate taxes in the nation. Again.<\/span>
\nWhat\u2019s more, the \u201cCorporate Transit Fee\u201d as he euphemistically calls it, would be permanent, unlike the temporary Corporate Business Tax surcharge it replaces. The tax also plays havoc with corporate balance sheets, as the new levy would be retroactive to Jan. 1, 2024, when the old 2.5% temporary CBT surcharge expired, instead of July 1 when the FY25 budget begins.<\/span>
\nLet me also point out that all this talk of raising taxes comes at the same time as the governor has a $6 billion state budget surplus.\u00a0<\/span>
\nIf the Legislature goes along with this, it will be a major blow to New Jersey\u2019s economic competitiveness. Our neighbors in Pennsylvania are lowering their top corporate tax rate to 4.9% \u2013 and simultaneously funding mass transit \u2013 without raising business taxes.<\/span>
\nIn short, the governor is proposing a punitive tax on our largest corporations, many of whom are headquartered in non-urban areas far from commuter train lines. The economic impact of this tax will trickle down and be felt by their employees and smaller companies who do business with them.<\/span>
\nAnd to state the obvious, the governor\u2019s sudden reversal on the surtax is simply bad form. Businesses require the ability to plan to be successful. When public officials make promises that drive investment, and then renege on them a few weeks later, it goes beyond creating terrible policy.\u00a0<\/span>
\nIt either reaffirms that New Jersey is anti-business, or it shows the state really is a fiscal mess, which was only masked by federal dollars indirectly funding shortfalls in the short term.<\/span>
\nNJBIA calls on the Legislature to right this wrong. Make our businesses a priority instead of taking advantage of them with tax increases that put them, and the tens of thousands of jobs that they represent, at risk.\u00a0<\/span>
\nStop creating unsustainable state budgets and forcing the business community to make up the shortfall for year-after-year irresponsible spending increases. During the budget process, we intend to hold our policymakers accountable to do right by New Jersey businesses.<\/span>\u2002<\/span>
\nTo access more business news, visit\u00a0<\/i><\/b>NJB News Now.<\/i><\/b><\/p>\n