NJBIA President and CEO Michele Siekerka issued the following statement Wednesday regarding forecasts of a multibillion surge in tax revenue with the June 30 budget deadline approaching.
“With billions in additional revenue in the state’s coffers, New Jersey finds itself with a unique opportunity to right its fiscal ship and provide some short-term relief for taxpayers – including businesses.
“New Jersey’s surplus provides the opportunity to pay down billions of dollars of state debt, including additional pension funding, while still preparing for future budgets and revenue uncertainty to avoid any need for new taxes down the road.
“Fiscally responsible steps today will allow the corporate business tax surtax, for example, to sunset tomorrow. This was supposed to occur in 2020, but New Jersey’s 11.5% CBT rate remains the highest in the nation by a considerable margin.
“New Jersey businesses pay some of the highest taxes in the nation, which is now exacerbated by another $1 billion in unemployment insurance tax increases. This is a direct and impactful financial hit not on earnings, but on jobs. All for a crisis they did not create.
“These same businesses face more post-pandemic challenges with high inflation, worker shortages, increased energy costs and supply chain woes. Surplus can, and should, be used to relieve our businesses of this UI burden.
“It is also appropriate to provide property tax relief that includes our business community. Governor Murphy’s proposed ANCHOR Property Tax Relief program leaves out businesses, which pay nearly 50% of the state’s property taxes.
“In addition to UI and business property tax relief, expanding the $50 million Main Street Recovery Finance Program, creating new childcare tax credits for employers and enhancing the Earned Income Tax Credit to incentivize people to work would all be welcome, job-creating relief supporting both the employer and employee.
“It is incumbent upon the Legislature and the Governor to take this perhaps once-in- a-lifetime opportunity to right New Jersey’s fiscal ship and provide much-needed relief for taxpayers, inclusive of our business community.”