NJBIA President and CEO Michele Siekerka issued a statement regarding the $56.6 billion budget for FY 2025 approved by the Legislature, which includes a 2.5% Corporate Transit Tax. This tax positions New Jersey with the highest corporate business tax in the nation at 11.5%.
“While we always try to find the positives in a state budget, the unfortunate fact is this spending package is overwhelmingly bad for our job creators, for our taxpayers and our overall fiscal responsibility,” Siekerka stated.
Siekerka criticized the budget's approach to fiscal management, noting, “We are raiding a debt defeasance fund while we have a surplus. We have a structural deficit, but we have $700,000,000 in discretionary spending and a damaging, yet unnecessary $1 billion business tax that will stymy economic growth and jobs and make our state less affordable.”
She expressed concern over the new Corporate Transit Tax: “Obviously, we have been on record for more than four months about the many reasons why this Corporate Transit Tax is just terrible policy, not just for businesses, but for New Jersey residents, consumers and workers.”
Siekerka further highlighted what she perceives as an apparent disregard for employers: “But what’s more concerning as we look ahead is the apparent lack of appreciation and consideration of our employers and our business community.”
Addressing broader issues within state policy towards businesses, Siekerka remarked, “At the end of the day, this massive 20% tax on our largest employers was born of a broken promise from our governor. It is on top of other major business taxes levied by this administration. It will have little to no benefit for impacted employers. It is punitive and damaging in its retroactivity. It wholly worsens our business reputation.”
She also questioned whether the funds would be used solely for their intended purpose: “It is not needed this year. And it quite likely won’t be used solely for its stated intent, NJ TRANSIT.”
Despite acknowledging the challenges faced by Governor Murphy and the Legislature, Siekerka voiced her disappointment: “We truly do understand that Governor Murphy and the Legislature have many constituents to answer to and there are a lot of issues in this state... But what are New Jersey employers to think when they are not only continually overburdened and overregulated but also misled by policy statements that don’t stick – without any apparent remorse?”
Concluding her statement with a call to action, Siekerka said: “It’s a hard truth... We believe that some policymakers have some work to do to make our job creators feel they’re more than a bottomless trough of revenue... We respectfully ask our leaders...to seek more pro-business policies... As always, we stand ready to work with them to bring that much-needed balance to business... We need to do better for business.”
