With less than two weeks before the FY25 State Budget is finalized, NJBIA today released its latest Do Better for Business video expressing concern over Gov. Phil Murphy’s proposed $1 billion tax on large employers and its potential impact on job losses in New Jersey.
The video, titled “A Tax Increase to Increase Job Losses,” highlights recent instances of large New Jersey employers relocating out-of-state, reducing jobs, or expanding elsewhere. Supporters of the significant tax often argue that it won’t harm businesses or workers.
Most notably detailed in the video is the decline in the number of Fortune 500 companies headquartered in New Jersey, from 22 in 2018 to 14 in 2024.
“This statistic alone should cause our policymakers to second guess their actions in considering a tax increase on the exact type of employers that create the exact jobs we need in New Jersey – those that pay a middle level income wage and then some,” said NJBIA President and CEO Michele Siekerka.
“The purpose of this video is to put the question to policymakers who will decide to support or oppose this tax: Why would you want to further challenge our largest job creators to want to stay, grow or invest here by making them an extreme national outlier for corporate taxes?
“Obviously, there are businesses doing quite well in New Jersey, which we are grateful for. And just as obvious, there are also more companies reducing their workforce who are not featured in this video. But the bottom line is the contemplated tax policies of Governor Murphy and legislative leaders will not improve this situation. In fact, it is the polar opposite of supporting a competitive and affordable business climate.”
New Jersey’s unemployment rate currently stands at 4.7%, ranking as the fifth highest nationwide.
If a proposed 2.5% Corporate Transit Tax by Gov. Murphy—despite his previous vow to sunset a temporary 2.5% surtax at the end of 2023—is finalized in the FY25 budget, New Jersey will have a combined corporate tax rate of 11.5% for its top employers—the highest such rate nationally.
Following Gov. Murphy’s reversal on having what would be America’s highest corporate tax rate, NJBIA launched a “Do Better for Business” campaign aimed at raising awareness about the Corporate Transit Tax and other anti-business policies proposed by lawmakers.
This campaign has included media ads across various outlets, an ongoing series of “Do Better for Business” explainer videos, and nearly 1,000 requests from New Jersey residents urging their lawmakers to reject Gov. Murphy’s proposal.
Last week, NJBIA released a two-page infographic titled “40 Reasons Why a $1 Billion Corporate Transit Tax is Bad Policy,” outlining how such a significant tax would negatively affect New Jersey employers, workers, residents, and ratepayers alike.
“We continue to urge our policymakers to reject this tax,” Siekerka stated. “When you have a permanent 11.5% corporation tax that is an extreme national outlier on top of our other high business taxes—and you have regional competitors going in the opposite direction regarding corporate taxes—you’re providing an unmovable stumbling block for companies wanting to come here or grow here.”
“There are other solutions available for NJ TRANSIT,” Siekerka added. “We have emphasized all year that our policymakers need creative thinking rather than defaulting to poor tax policies and continued revenue raisers that impact New Jersey’s affordability and regional competitiveness. We stand ready to discuss these solutions at this critical time.”
