NJBIA President and CEO Michele Siekerka issued the following response to today’s proposed NJ TRANSIT increase and calls from progressive groups/leaders to fund NJ TRANSIT by adding a Corporate Business Tax surtax to help fund the agency.
With the sunset of the temporary 2.5% CBT surtax on Jan. 1, New Jersey now has the fourth highest CBT rate in the nation.
“Unfortunately, these familiar calls still show a complete misunderstanding of the impacts of having the highest CBT rate in the nation and the benefits that happen when the CBT rate is more competitive.
“Governor Murphy made the correct call in letting the CBT temporary surtax expire. Looking for sustainable and dedicated funding for NJ TRANSIT which excludes more business tax increases that make New Jersey less competitive is also the correct call.
“The fact of the matter is there has never been a nexus between the Corporate Business Tax surtax and NJ TRANSIT.
“Beyond the obvious reputational damage that is done for New Jersey’s business climate nationally and internationally by having the highest CBT rate in the country, the notion of proactively wanting to keep our state as an outlier on business taxes ignores how challenging it is for our job creators to grow and expand.
“Sadly, those who seek to just heap yet another tax on business ignore the fact that some of them may not be enjoying the same level of success as they would elsewhere. Or that a tax increase, on top of all the high costs of running a business in New Jersey, actually CAN make our state unaffordable for them.
“To just wave a magic wand with yet another tax on business, which would actually be a new tax during a time of multi-billion-dollar surplus, without looking at comprehensive NJT solutions for the short-term and long-term, and seeing where we can control spending as a state, while seeking where we might be able to help our most vulnerable NJ TRANSIT riders, is not inspired thinking.”
