The New Jersey Business & Industry Association (NJBIA) released an infographic today detailing the potential adverse effects of the proposed $1 billion Corporate Transit Tax on the state's largest employers. The tax, included in Governor Phil Murphy's FY25 budget, would result in New Jersey having the highest corporate business tax rate in the country and could further harm the state's business reputation.
The two-page document, titled “40 Reasons Why a $1 Billion Corporate Transit Tax is Bad Policy,” outlines why this significant tax increase is detrimental to employers, workers, residents, and ratepayers in New Jersey. NJBIA President and CEO Michele Siekerka emphasized the broad impact of this tax.
“The depths of impacts of this tax will hit our largest job-creators hard, and well beyond,” said Siekerka. “It’s critical that the public at large, the media and most importantly, the Legislature understand the full ramifications of this unfair tax increase.”
Siekerka stressed that lawmakers need to fully comprehend how this tax affects New Jersey’s affordability issues and economic activity as they continue budget negotiations. She called on legislators to consider these impacts carefully.
“We are calling on our legislators to look closely at these impacts and determine how this tax addresses New Jersey’s affordability issues, how more jobs will be created by it and how our state budget issues will benefit from depressing our economic activity,” she added.
The infographic divides its 40 reasons into four sections: New Jersey Business Impacts; Downstream Impacts; The Lack of Nexus with NJ TRANSIT; and Competitive Impacts.
In response to Gov. Murphy's reversal on maintaining a high corporate tax rate, NJBIA launched a “Do Better for Business” campaign aimed at raising awareness about the Corporate Transit Tax and other proposed anti-business policies. This campaign includes media advertisements across various outlets, explainer videos underlining their stance, and nearly 1,000 requests from residents urging lawmakers to reject Gov. Murphy’s proposal.
For additional details on the campaign or to view the full "40 Reasons" infographic, visit NJBIA's website.
