New Jersey Chamber of Commerce President and CEO Tom Bracken addressed the Assembly Budget Committee today, expressing concerns over the proposed $56 billion state budget. He argued that it would harm New Jersey's economy and its appeal as a business-friendly state. Bracken criticized the 2.5% Corporation Business Tax hike on large employers, describing it as "punitive and egregious."
"Our largest employers who are also our biggest nonprofit philanthropists are being saddled with a completely unwarranted tax increase," said Bracken. "It makes our state more expensive and less competitive."
The proposal follows the expiration of a previous 2.5% surcharge on the Corporation Business Tax but differs by being permanent and applicable to all revenue. "This is more punitive," stated Bracken.
Bracken also took issue with a proposed $1 tax per truck for warehouse logistics, calling it a nuisance tax that targets one of the fastest-growing sectors in New Jersey's economy.
Several state agencies supporting businesses face funding cuts under the new budget, including the New Jersey Economic Development Authority, New Jersey Business Action Center, and The New Jersey Small Business Development Centers. "The budget will provide less support to an already overtaxed and over-regulated business community," noted Bracken.
Bracken emphasized that maintaining economic growth is crucial for New Jersey's future, pointing out that current revenues are declining while expenses rise. He urged fully funding key business-supporting agencies, using part of the state's surplus to avoid new taxes, eliminating both the Corporate Transit Fee and Buck-a-Truck tax.
"You cannot grow anything unless you feed it," concluded Bracken. "We are not only NOT feeding the business community; we are starving it."
