It has been over six weeks since Gov. Phil Murphy proposed a highly punitive business tax increase on the state’s largest companies in his fiscal 2025 state budget. Essentially, he is saying New Jersey should replace the temporary 2.5% Corporate Business Tax surcharge that expired at the end of 2023, and repackage it as a Corporate Transit Fee. This tax hike would affect New Jersey’s largest job creators, tax revenue producers and philanthropic givers — in a very bad way, as would the “Buck a Truck” proposal, which is an unnecessary nuisance tax on the state’s burgeoning logistics industry. Moreover, the proposals would hurt the progress New Jersey has been making as a desirable location to run a business.
Last week, we had the privilege of hosting the remarkable ReNew Jersey Business Summit & Expo in Atlantic City, attended by 850 leaders in business, nonprofits, government, and academia. The energy, insights and optimism shared during the Summit were inspiring.
It reinforced a resounding message: New Jersey is an exceptional place to conduct business.
In fact, Ralph LaRossa, the president and chief executive officer of PSEG and Chair of Choose New Jersey, when referencing New Jersey’s attractiveness, as evidenced by the Garden State being awarded the World Cup Final said, “The world chose New Jersey, So maybe you should choose New Jersey.” He was speaking to companies considering investments in the Garden State.
The recent release of a state Disparity Study by the Murphy administration has shed light on a longstanding issue in Trenton – the inequities in public contract opportunities for minority-, veteran-, and women-owned businesses in New Jersey. Examining five years of procurement data across goods and services, professional services, and construction, the 221-page report confirms what many already knew: A significant disparity exists.
The Governor’s State of the State address emphasized affordability and continuing to grow a fair, strong and inclusive economy to create the best state to raise a family. He mentioned several times the need to “work together” to achieve those goals.
The talk of extending the state’s “temporary” 2.5% Corporation Business Tax (CBT) surcharge – set to expire at the end of 2023 – has to end. Some are advocating it be prolonged for the purpose of funding NJTransit, which is experiencing financial problems. Others are publicly stating Gov. Murphy should break his long-term promise to end the surcharge to fund other programs. The revenue from the surcharge is NOT the solution to the state’s fiscal challenges – and it never was intended to be that.
As we reflect on the recently concluded legislative elections, it is evident that the voters have spoken, and their message is clear: The economy and affordability in New Jersey must be addressed.