It has been over six weeks since Governor Phil Murphy proposed a new business tax increase on New Jersey's largest companies in his fiscal 2025 state budget. The proposal suggests replacing the expired 2.5% Corporate Business Tax surcharge with a Corporate Transit Fee (CTF). This change would impact major job creators, tax revenue producers, and philanthropic contributors in the state. Additionally, the "Buck a Truck" proposal is viewed as an unnecessary tax on the logistics industry.
Executives from affected companies have expressed frustration to the New Jersey Chamber of Commerce. President and CEO Tom Bracken stated, "Business leaders were promised that the surcharge was going away, and, instead, it would come back under this plan." He emphasized that this tax hike contradicts what New Jersey's economy requires for stability.
The responsibility now lies with the state Legislature to decide on this matter. The Chamber of Commerce is urging legislators to oppose the CTF, arguing it threatens businesses employing thousands of residents. They are also advocating against proposed cuts to agencies like the New Jersey Economic Development Authority and New Jersey Business Action Center.
Bracken highlighted that many organizations requested more funding in their budget testimonies, but the Chamber only asked not to jeopardize economic prospects with an inappropriate tax. He pointed out that raising taxes on large corporations is not a sustainable solution for economic growth or funding state programs.
The recent ReNew Jersey Business Summit & Expo in Atlantic City revealed significant concern about the proposed tax hike among business leaders. Despite these concerns, there remains enthusiasm for New Jersey as a business location.
As legislative discussions continue regarding the final budget document and potential tax increases, Bracken concluded by urging lawmakers to vote against these measures to maintain positive momentum for New Jersey's economy.
This message was originally published in ROI-NJ.
