In an op-ed published in NJ Spotlight News on Monday, NJBIA President & CEO Michele Siekerka made the case for lowering New Jersey’s highest-in-the-nation 11.5% corporation business tax, noting it should be the first step in a longer journey to ease taxes on Garden State companies and their customers.
“Data that shows how a more competitive CBT rate can decelerate outmigration of income-generating residents and businesses, increase home values and wages for our residents, as well as have significant downstream impacts for our small and midsize businesses and nonprofits,” Siekerka wrote in the op-ed.
The temporary 2.5% CBT surcharge imposed in 2018 on top of New Jersey’s 9% CBT rate is scheduled by law to expire on Dec. 31. NJBIA is urging the Legislature to refrain from extending the surcharge beyond its scheduled sunset date (as lawmakers did once before in 2020).
Siekerka noted 13 states have reduced their rates in the past five years, with Arkansas, Iowa, Idaho and New Hampshire reducing theirs for 2023, because they recognize that a more competitive tax environment boosts economic growth.
“The 2.5% CBT sunset is a great opportunity for the Legislature to send the business community a positive signal, one that will give them needed predictability to plan with confidence over the long term and make investments that can create more jobs,” Siekerka said.
To read the entire op-ed, go here.
