“Senate President Sweeney announced a plan to permanently increase the Corporate Business Tax today to better fund NJ Transit. The CBT rate dropped from a temporary 11.5% to a temporary 10.5% on January 1, and it was supposed to be permanently lowered back to its pre-surtax level of 9% in a few years. Senate President Sweeney’s plan is to reverse last month’s 1 percentage point decrease and to only go back to 10% instead of 9% in a few years. That additional percentage point would be used as a new dedicated source of NJ Transit revenue. NJBIA is opposed to this proposal to permanently increase our corporate business tax rate, and we look forward to continuing to work with Senate President Sweeney to improve our corporate tax policies and push for structural reforms that reduce spending and the need for any tax increases.”
NJBIA President and CEO Michele N. Siekerka issued the following statement opposing today’s proposal for a permanent increase on New Jersey’s corporate business tax rate as a dedicated funding source for New Jersey Transit.
“NJBIA supports the concept of responsibly dedicating funds to infrastructure and the priority of making improvements at NJ TRANSIT. But we do not need more revenue raisers to do it.
“While we understand the need to prioritize improvements at NJ TRANSIT, today’s call for a permanent increase on New Jersey’s corporate business tax is very discouraging and it will greatly impact our largest employers who have already provided historic revenue to the state over the past year. Its permanence will also serve as yet another deterrent for any corporation looking to relocate here.
“More disappointingly, our policymakers continue to only target solutions to our challenges through more taxation and spending, rather than the comprehensive reforms we have been calling for. In fact, we would not need to consider tax increases today if our policymakers acted on the Path to Progress structural reforms.
“That we continue to seek to bring more tax burden to our businesses and residents during a time of dramatic revenue over-performance, and not act on proposed reforms to fix what is fiscally and structurally broken in New Jersey, is confounding. These reforms need to get done. We cannot tax ourselves out of these challenges.”
Please reach out to me with any questions and I will be sure to keep you updated.