Lawmakers on Sunday approved a series of tax increases, many of which will impact businesses, to balance a $36.5 billion budget.
The budget deal comes with an increase in the corporate business tax, a raise in the income tax rate for those making more than $5 million per year, and combined reporting, which could allow the state to tax some out-of-state revenues of New Jersey companies.
The measures passed Sunday afternoon and evening.
NJBIA remained strongly opposed to increasing taxes, lobbying legislators throughout the weekend to focus on spending instead.
NJBIA President and CEO Michele Siekerka said in a statement that the deal takes New Jersey in the wrong direction.
“Today’s actions may avoid a government shutdown, but they do so at a tremendous cost in jobs, affordability and competitiveness,” Siekerka said.
“Unfortunately, these tax increases do not address the fundamental problems facing New Jersey’s finances. This year’s budget represents an 8 percent increase in spending,” she added. “Until the governor and legislators get serious about addressing the state’s unsustainable spending levels, the state budget will need ever increasing revenue from its taxpayers, and as we have seen, that burden will likely fall on the backs of our job creators.”
Here’s what was approved.
- FY 2019 State Budget: The $36.5 billion plan represents an 8 percent increase in spending over FY 2018.
- Corporation Business Tax surcharge: the new rate for companies making more than $1 million is 11.5 percent, the second highest rate in the nation (Iowa’s is 12 percent).
- Income tax increase: Income over $5 million will be taxed at 10.75 percent.
- Combined reporting.
The bills are awaiting the governor’s signature.
Really …. Tell me again why I’m doing business in NJ.
Agreed! It is a “run from state” I will retire in Florida or Delaware. No common sense in this state.
I agree
This state needs to stop protecting the government work force and start protecting the small business that’s the engine of NJ economy. We as small businesses need to make our voices heard that with out us there is no growth or future for NJ.
Solution
They should just tax the idiots who voted for this jerk
To all those that voted in Murphy – great job! You made a mockery of the State of NJ!
It is hard enough to live and own a business in this state but you just made it a great deal worse!
Watch as companies leave the state and watch as jobs leave with them!
You are not a small business if you make more than 1 million dollars a year. You can pay the tax increase if you make more than 5 million dollars a year. New Jersey is a great state, if your being so successful here you can pay some more to support the state.
They don’t listen!
Need to move your business out of N.J.
Unfortunately the Democrats never learn and this just insures the continuous exodus of companies out of NJ. The individuals making $5 million and more will still leaving as well. I guess they have to start funding all of the freebies this socialistic Governor will start handing out.
Not one mention of spending cuts!!!!!! Tax, tax, tax, that’s all they know. Murphy is a Union stooge. I love our state, but they just keep making it harder and harder to live here. That’s why all the teachers and civil servants retire and move out!!!
Just ridiculous! What’s next? Get real MURPHY –
Get real Murphy, what the hell is wrong with you? Don’t you understand this state? All you want to do is fund things that have been cut in the past with no plan except tax, tax, tax. Wake up idiot, they were cut for a reason. You don’t have a clue. Hail the Supreme Court! Demolish unions, they are just money making businesses. Anyone with half a brain would realize that.
Increasing personal taxes on those making more than 5 million dollars and higher corporate taxes on businesses making more than 1 million dollars makes good sense.
They raised the gas tax and in exchange the sales tax was lowered which made a big impact on small businesses. Governor Murphy, are you going to lower the gas tax so small businesses that depend on trucking can get a break?
Hello North Carolina!
Would you like the taxes stemming from a 100+ employee payroll?
Great!… because New Jersey is telling me loud and clear it could care less!
This is why business and residence are fleeing New Jersey at an alarming rate. Gov. Murphy is making it impossible for small businesses to survive in this state. What the hell is he thinking? If you think big corporations are closing now and moving to more tax friendly states, YOUR GOING TO SEE SMALL BUSINESS CLOSING IN EVERY SMALL TOWN. We can’t survive the ridicules tax increases, the high property taxes and now they want to raise the minimum wage to $15.00 per hour.
Idiot
If voted for this guy, hold on for the ride of people leaving a State that ready has ridicules
taxes!! Try controlling all the waste, before you tax the hell out of us!
Actually:
If our earnings were over 1,000,000.00, the additional tax would be $2,500.00 for EACH $100,000.00 we earned…. Since the fortunes of our business have changed, because of the changing retail landscape and not because of state or local taxes, I would love to be able to pay that difference to improve our schools, for one. (None of us would be funding schools, providing support for home ownership, and what about the increased earned income tax credits???? were it not for our state & local taxes) There’s more to this than ranting about taxes…
I, am assuming none of the comments before this, are from Ultra Million Dollar Earners… Otherwise, there might be a few more “fleeing” to Florida or Delaware, if they haven’t already done so…
M