It has been over six weeks since Gov. Phil Murphy proposed a business tax increase on the state’s largest companies in his fiscal 2025 state budget. The proposal suggests replacing the temporary 2.5% Corporate Business Tax surcharge, which expired at the end of 2023, with a Corporate Transit Fee (CTF). This change would impact New Jersey’s largest job creators, tax revenue producers, and philanthropic contributors.
Tom Bracken, President & CEO of the New Jersey Chamber of Commerce, expressed concern over this proposal. "Business leaders were promised that the surcharge was going away," he stated. Instead, it is being reintroduced under a different name and form, retroactive to January 1. According to Bracken, this move contradicts what New Jersey's economy needs. "New Jersey’s employers need predictability in order to operate — and this proposal throws a wrench into their planning," he added.
The New Jersey Chamber of Commerce has received feedback from various executives expressing frustration and disappointment regarding the proposed tax hike. Bracken noted that many executives are not pleased with the direction of this budget proposal and have serious concerns about New Jersey’s long-term predictability.
The chamber is actively meeting with legislators to voice opposition to the CTF and has testified before legislative budget committees about its potential negative impact on the state's economy and business attraction efforts. Additionally, they are advocating against proposed cuts to state agencies like the New Jersey Economic Development Authority and New Jersey Business Action Center.
More than 50 local and regional chambers have joined forces with the New Jersey Chamber of Commerce in opposing the CTF. In their budget testimonies, these organizations did not request additional funds but instead asked not to jeopardize economic progress by approving an ill-timed tax.
Bracken emphasized that while New Jersey needs stable revenue sources for economic growth and state programs, raising taxes on major corporate citizens is not a viable solution. He highlighted that during the recent ReNew Jersey Business Summit & Expo in Atlantic City, attendees frequently cited the proposed business tax hike as a significant obstacle.
"The good news is that the budget — and tax increase — has not yet been passed," Bracken concluded. As legislators finalize their budget decisions, he urged them to vote against the tax increase to maintain positive momentum for New Jersey's economy.
