{"id":9547,"date":"2024-04-25T08:00:16","date_gmt":"2024-04-25T05:00:16","guid":{"rendered":"https:\/\/ch.jfdi.cc\/?p=9547"},"modified":"2024-04-25T08:00:16","modified_gmt":"2024-04-25T05:00:16","slug":"corporate-taxes-and-public-transportation-debate-rages-in-new-jersey","status":"publish","type":"post","link":"https:\/\/ch.jfdi.cc\/?p=9547","title":{"rendered":"Corporate Taxes And Public Transportation: Debate Rages In New Jersey"},"content":{"rendered":"<p>NEW JERSEY \u2014 Should New Jersey raise taxes on the state\u2019s wealthiest corporations to pay for public transportation? That\u2019s the ongoing debate that is ruffling feathers in the Garden State this week as business lobbyist groups continue to push against the controversial proposal \u2013 and social justice advocates continue to cheer it on.During his 2024 budget address, Gov. Phil Murphy announced that state officials are proposing the creation of a \u201cnew\u201d 2.5 percent tax on businesses that earn more than $10 million per year. It would create a dedicated funding source for the cash-strapped NJ Transit, which is planning a 15 percent fare hike for commuters to cover a sprawling shortfall. <strong>See Related: <\/strong>Controversial New Tax On Wealthy Corporations Proposed In New Jersey On Tuesday, a group of business leaders held at a news conference at the New Jersey Business and Industry Association (NJBIA) headquarters in Trenton to rally against the proposal and call for state lawmakers to reject it.<\/p>\n<section class=\"styles_SubscribeForm__0dj5n\">\n<h2 class=\"styles_SubscribeForm__title__F_olP\">Interested in local real estate?<span class=\"styles_SubscribeForm__title--nextLine__FTO3K\">Subscribe to Patch&#8217;s new newsletter to be the first to know about open houses, new listings and more.<\/span><\/h2>\n<\/section>\n<p>\u201cThe greatest danger from Gov. Phil Murphy&#8217;s proposal to raise corporate taxes to the highest in the nation is not necessarily that major legacy companies in New Jersey will leave \u2013 though some might,\u201d the NJBIA said. \u201cRather, the bigger threat is that the slow drip of companies already making workforce, research and facility investments in other states will turn into a torrent,\u201d the group added.<\/p>\n<section class=\"styles_SubscribeForm__0dj5n\">\n<h2 class=\"styles_SubscribeForm__title__F_olP\">Interested in local real estate?<span class=\"styles_SubscribeForm__title--nextLine__FTO3K\">Subscribe to Patch&#8217;s new newsletter to be the first to know about open houses, new listings and more.<\/span><\/h2>\n<\/section>\n<p>According to NJBIA president Michele Siekerka, companies that have been headquartered in New Jersey a long time are not likely to close their doors immediately. But when that company has its next opportunity to create jobs or build a new facility, they will look to do it in a more tax-friendly and affordable state, she argued. Lori Roth, co-managing partner of the Prager Metis accounting firm and the vice-chair of NJBIA\u2019s board of trustees, criticized a provision in the proposed tax hike that would make it retroactive to Jan. 1, which is \u201cextremely problematic\u201d for the nearly 600 major corporations that would be impacted.\u201cThese businesses were told time and time again that as of Jan. 1, 2024, the 2.5 percent surcharge was going away,\u201d Roth said, referring to a previous \u201csurcharge\u201d on top of the state\u2019s standard 9 percent tax, which sunset earlier this year. \u201cNow, should this proposal go through, that tax is back \u2013 and that is something unplanned and unbudgeted for,\u201d Roth added.It isn\u2019t only big businesses that will be hit hard, Roth said: their shareholders and retirement plans that invest in them will also suffer. Christina Renna, president and CEO of the Chamber of Commerce of Southern New Jersey, said the proposed tax was an especially \u201cbitter pillow to swallow\u201d for South Jersey companies. \u201cThese larger businesses are being asked to pay a 2.5% fee on top of the 9% corporate business tax they&#8217;re already paying, to pay for a public service that they do not use and that their employees do not use,\u201d Renna said, referring to NJ Transit. The NJBIA has launched a website to advocate for their position, which can be seen here. <strong>\u2018BIG BUSINESSES DON\u2019T WANT TO PAY THEIR SHARE\u2019<\/strong>In the wake of Tuesday\u2019s news conference, advocates who have been pushing to raise the corporate tax rate accused business lobbyists of \u201cshowing their true colors\u201d by opposing a \u201chighly targeted tax\u201d on multinational companies like Amazon and Walmart. They included Eric Benson, a campaign director with For The Many NJ, a coalition of more than 40 organizations that are trying to \u201cexpand funding for essential services\u201d and \u201ccommunities that have been historically marginalized.\u201d  \u201cThe Corporate Transit Fee would only apply only to businesses that earn more than $10 million in profits each year, representing the top 1 percent of corporate filers in the world,\u201d Benson argued. \u201cThese are the same giant corporations that benefited from the Trump tax cuts, and they\u2019ve been raising prices on consumers and soaking up record profits ever since,\u201d he continued. \u201cIt\u2019s not a surprise that big businesses don\u2019t want to pay their fair share, but it\u2019s incredibly tone deaf for them to say this a week after working families all filed their taxes and paid what they owe.\u201d Benson continued:<\/p>\n<blockquote><p><strong>\u201cThere\u2019s no reason to think that the corporate transit fee will hurt businesses, especially since these same companies saw their profits skyrocket while the corporate surcharge was in effect. Now that their tax cut is in jeopardy, corporations and their lobbyists are complaining that they shouldn\u2019t have to pay for the public infrastructure that they benefit from. The organizations that make up our coalition, along with a majority of New Jerseyans, beg to differ. It\u2019s time that these dollars earned off of our labor and spending go towards public investments we need like NJ Transit, not the pockets of shareholders and executives.\u201d<\/strong><\/p><\/blockquote>\n<p> A recent Fairleigh Dickinson poll found that 54 percent of New Jersey residents would support restoring a corporate tax surcharge and dedicating the revenues to NJ Transit. About 29 percent of respondents said they would not support it. <strong>\u2018RAISING TAXES OF ANY KIND IS CRAZY TALK\u2019<\/strong> Progressive groups like For The Many NJ weren\u2019t the only ones to speak out in the wake of Tuesday\u2019s news conference. New Jersey Assemblyman Brian Bergen challenged the NJBIA\u2019s policy positions and attacked its advocacy efforts, zeroing in on what he said was a suggestion to increase the state sales tax rate to 7 percent as a solution to NJ Transit\u2019s budget deficit. \u201cIn a time when people are struggling, raising taxes of any kind is crazy talk,\u201d said Bergen (NJ-26).\u201cThe sales tax in particular affects every person and has a disproportionate impact on lower income families,\u201d Bergen said. \u201cAnyone who thinks this is a good idea should have their head examined.\u201d The NJBIA put out a clarification on Wednesday, saying that some reports and pundits were mischaracterizing their suggestion: \u201cFollowing a press conference on the impacts of a proposed 2.5% Corporate Transit Fee on Tuesday, there were a few reports indicating the NJBIA was supporting an increase of New Jersey sales tax as a funding source for the proposed tax on business. In statements made to the press, however, NJBIA President and CEO Michele Siekerka was speaking of a best option of dedicating a portion of existing, organic sales tax growth without a tax increase.\u201d While there was discussion of a previous 7 percent sales tax in New Jersey during the press conference, compared to the current rate of 6.625 percent, the NJBIA did not call for a sales tax increase, spokespeople said. <\/p>\n<figure><\/figure>\n<figure><figcaption>Business advocates argue against a proposal to raise corporate taxes in New Jersey at a news conference on Tuesday (Photo: NJBIA)<\/figcaption><\/figure>\n<p> <em>Send local news tips and correction requests to eric.kiefer@patch.com. Learn more about advertising on Patch here. Find out how to post announcements or events to your local Patch site.<\/em><\/p>\n<hr \/>\n<p>Get more local news delivered straight to your inbox.<!-- -->Sign up for free Patch newsletters and alerts.We\u2019ve removed the ability to reply as we work to make improvements. Learn more here<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New Jersey is considering raising taxes on businesses that earn more than  million per year to create a dedicated funding source for NJ Transit, which is facing a financial shortfall. Business lobbyist groups are pushing against the proposal, arguing that it could lead to companies leaving the state or making investments elsewhere. Advocates for the tax increase argue that it would only apply to the top 1 percent of corporate filers and that these companies have benefited from tax cuts in the past.<\/p>\n","protected":false},"author":6,"featured_media":9548,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[1964,2290,246,6497,1766,186,4844,7803,6765,1221,1512,1793,6267,2536,33,2542,2021,4498,4919,3399,7663,5099,5516,3343,7279,5596,304,3767,2294,1823,1991,6403,3752,28,582,4484,3940,148,3479,3331,4344,6121,4833,1215,4843,1033,4927,4671,3822,7802,5051,1400,287,6074,737,4080,5614,6106,7662,4441,1806,3480,7786,6001,1358,1065,3358,4343,4556,1183,7801,1846,3076,618,2666,841,4928,6305,5351,18],"class_list":["post-9547","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-other","tag-2024-budget","tag-advertising","tag-amazon","tag-benefit","tag-budget","tag-business","tag-business-leaders","tag-business-lobbyists","tag-business-tax","tag-campaign","tag-cash","tag-coalition","tag-commerce","tag-communities","tag-companies","tag-conference","tag-consumers","tag-corporate-tax","tag-corporate-tax-rate","tag-corporate-taxes","tag-corporate-transit-fee","tag-corporations","tag-danger","tag-events","tag-fair-share","tag-families","tag-funding","tag-growth","tag-income","tag-increase","tag-industry","tag-infrastructure","tag-investments","tag-jobs","tag-justice","tag-labor","tag-leaders","tag-local","tag-multinational-companies","tag-news","tag-nj-transit","tag-opportunity","tag-policy","tag-poll","tag-president","tag-prices","tag-progressive","tag-proposal","tag-public-service","tag-public-transportation","tag-raising-taxes","tag-rally","tag-real-estate","tag-research","tag-retirement","tag-retirement-plans","tag-revenues","tag-sales","tag-sales-tax-increase","tag-service","tag-services","tag-spending","tag-state-officials","tag-struggling","tag-support","tag-tax","tag-tax-cuts","tag-tax-increase","tag-tax-rate","tag-taxes","tag-taxes-on-wealthy-corporations","tag-threat","tag-tips","tag-top","tag-transportation","tag-trump","tag-wealthy","tag-who","tag-working-families","tag-world"],"acf":{"keyphrase":"","keywords":"","sourceimg":"","country-category":""},"yoast_head":"<!-- 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