With less than two weeks before the FY25 State Budget is finalized, NJBIA today released its latest Do Better for Business video expressing concern for how Gov. Phil Murphy’s proposed $1 billion tax on large employers can exacerbate recent job losses in New Jersey.
The video, entitled “A Tax Increase to Increase Job Losses,” demonstrates recent examples of large New Jersey employers moving out-of-state, cutting jobs or growing elsewhere – as supporters of the massive tax often suggest that it won’t hurt businesses or workers.
Most notably detailed in the video, the number of Fortune 500 companies headquartered in New Jersey has decreased from 22 in 2018 to 14 in 2024.
“This statistic alone should cause our policymakers to second guess their actions in considering a tax increase on the exact type of employers that create the exact jobs we need in New Jersey – those that pay a middle level income wage and then some,” said NJBIA President and CEO Michele Siekerka.
“The purpose of this video is to put the question to policymakers who will decide to support or oppose this tax: Why would you want to further challenge our largest job creators to want to stay, grow or invest here by making them an extreme national outlier for corporate taxes?
“Obviously, there are businesses doing quite well in New Jersey, which we are grateful for. And just as obvious, there are also more companies reducing their workforce who are not featured in this video. But the bottom line is the contemplated tax policies of Governor Murphy and legislative leaders will not improve this situation. In fact, it is the polar opposite of supporting a competitive and affordable business climate.”
New Jersey’s unemployment rate is currently 4.7%, the fifth highest in the nation.
If a 2.5% Corporate Transit Tax, proposed by Gov. Murphy even though he vowed to sunset a temporary 2.5% surtax at the end of 2023, is finalized in the FY25 budget, New Jersey will have a combined 11.5% corporate tax rate for its top employers – the highest of its kind in the nation, by far.
Following Gov. Murphy’s about-face on having the highest corporate tax in the nation, NJBIA launched a “Do Better for Business” campaign to bring more visibility to the Corporate Transit Tax and other anti-business policies proposed by lawmakers.
That campaign has included media ads in multiple outlets, a continuing series of “Do Better for Business” explainer videos and nearly 1,000 requests from New Jersey residents to their lawmakers to reject Gov. Murphy’s proposal.
Last week, NJBIA released a two-page infographic, entitled “40 Reasons Why a $1 Billion Corporate Transit Tax is Bad Policy,” detailing how the massive tax is bad policy for New Jersey employers, workers, residents and ratepayers alike.
“We continue to urge our policymakers to reject this tax,” Siekerka said. “When you have a permanent 11.5% corporation tax that is an extreme national outlier, on top of our other high business taxes, and you have regional competitors going in the opposite direction for corporate taxes, you’re providing an unmovable stumbling block for companies to want to come here or grow here.
“There are other solutions to consider for NJ TRANSIT. We have said it all year – our policymakers are going to need creative thinking, versus defaulting to poor tax policies and continued revenue raisers that affect New Jersey’s affordability and regional competitiveness. We stand by at the ready to discuss those solutions at this critical time.”
