NJ Chamber of Commerce Encouraged By $29.4 Billion State Budget

The New Jersey State Chamber of Commerce is encouraged that the $29.4 billion state budget that Gov. Chris Christie signed into law today does not include increased taxes and instead relies on spending reductions to balance the budget.

"This will start the process of growing jobs and the economy," said Mary Ellen Peppard, government relations manager for the New Jersey Chamber of Commerce. “This budget does not continue tax increases enacted last year, such as the income tax hike on high earners and a surcharge on the Corporation Business Tax."

The budget does not renew the income tax rate increase enacted last year on those who make over $400,000. That increase was seen as a small-business tax hike since S-corporations, LLCs, partnerships and sole proprietorships, which pay taxes based on their owners’ personal income. It would have discouraged business owners from creating and retaining jobs or expanding their investments in New Jersey.

Additionally, the 4 percent surtax on the Corporation Business Tax (CBT) will be allowed to expire at the end of the fiscal year. It was originally slated to expire at the end of fiscal 2009.

Funding for several business incentive programs has been reduced or eliminated – the Technology Business Tax Transfer Program saw its budget cut in half. However, the final budget does not contain a provision initially included that increases business filing fees.

“The spending plan does not disproportionately burden the employer community, which is struggling in a recession,” Peppard said.