The New Jersey Business & Industry Association today released a new infographic detailing the many detrimental impacts of the proposed $1 billion Corporate Transit Tax on New Jersey’s largest employers, which will give the state the largest corporate business tax rate in the nation, by far, and worsen the state’s struggling business reputation.
The two-page document, entitled “40 Reasons Why a $1 Billion Corporate Transit Tax is Bad Policy,” details why the massive tax, proposed by Gov. Phil Murphy in his FY25 budget after he previously committed to the end of a temporary 2.5% corporate surtax for more than a year, is bad for New Jersey employers, workers, residents and ratepayers alike.
“The depths of impacts of this tax will hit our largest job-creators hard, and well beyond,” said NJBIA President and CEO Michele Siekerka. “It’s critical that the public at large, the media and most importantly, the Legislature, understand the full ramifications of this unfair tax increase.”
“As budget negotiations continue and decisions are made, it’s crucial that our lawmakers and legislative leadership have a full understanding of the consequences of this tax, which has been relayed to us in no uncertain terms directly by our impacted companies.
“We are calling on our legislators to look closely at these impacts and determine how this tax addresses New Jersey’s affordability issues, how more jobs will be created by it and how our state budget issues will benefit from depressing our economic activity.”
The 40 reasons are broken down into four sections: New Jersey Business Impacts; Downstream Impacts; The Lack of Nexus with NJ TRANSIT; and Competitive Impacts.
Following Gov. Murphy’s about-face on having the highest corporate tax in the nation, NJBIA immediately 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.
For more on the campaign, click here.
To see the full, “40 Reasons” infographic, click here.
