Gov. Phil Murphy has promoted an income tax increase on income over $1 million while the Legislature is proposing to increase the corporation business tax (CBT). Specifically, Senate President Stephen Sweeney and Assembly Speaker Craig Coughlin proposed a two year tax increase of 2.5 percent on companies making between $1 million and $25 million and 4 percent for companies making more than $25 million.
“NJBIA continues to emphasize to our policymakers that we cannot tax our way out of our fiscal challenges, nor should we attempt to,” said NJBIA President and CEO Michele Siekerka. “Adding any taxes to one of the highest-tax states in the nation without a comprehensive plan to address our structural deficit is irresponsible and will lead to further outmigration, less competitiveness and less affordability.”
“NJBIA urges policymakers to move forward with comprehensive reform and planning, and sustainable solutions. We look forward to being a part of that discussion.”
Earlier in the day, Murphy said he would veto the Legislature’s budget if it relies on “one-shot and ‘two-shot’ sources of revenue” as legislators prepared to introduce their versions of the FY 2019 spending plan today.
“Should the Legislature send me this budget proposal, let me be perfectly clear: I will veto it,” said Governor Murphy. “When you build a financial house of cards year after year, and see it fall year after year, at some point you have to realize that the same old way of doing business in Trenton isn’t working. We need a responsible budget based on real, sustainable revenue that makes an historic investment in the middle class.”
Read the governor’s news release here.