The New Jersey Chamber of Commerce is pleased that Gov. Murphy has introduced a budget that includes no new taxes and fees. We particularly commend the governor for reiterating his promise to allow the Corporation Business Tax (CBT) surcharge to sunset at the end of 2023. Now it is up to the members of the Legislature to do the right thing and pass this in June. The governor’s position on this is correct. It will help make the state more competitive and more affordable. It will also demonstrate that our leaders honor their commitments, which results in the reliability that businesses seek. Still, even after the CBT surcharge expires, New Jersey will have fourth highest CBT rate in the nation, which should be targeted for further reductions.
Missing from the budget – which includes a $10 billion surplus – are vital programs the business community has been seeking for some time. For instance, over the past several years, the New Jersey Chamber of Commerce has been calling for the creation of a grant fund that would provide working capital to entrepreneurs and business owners in every industry and region. We should use the surplus to finally make that a reality. This is also an opportunity to use the surplus to replenish the state’s Unemployment Insurance Fund, which many states have done, instead of through business payroll tax increases. These ideas should be seriously examined during upcoming budget discussions.
The Chamber is supportive of measures proposed by Gov. Murphy to assist business owners in urban areas hit hard by the pandemic, as well as programs that revitalize New Jersey’s main streets and downtowns. We back initiatives that support businesses in our shore towns since they contribute so much to the state’s overall economy. And we applaud the governor’s announcement to provide parents with increased childcare tax credits, which will enable many parents to get back to work and help ease the workforce shortage.
If Gov. Murphy wants to create a "next" New Jersey, simply doing more of the same as in previous budgets will make the change difficult. More aggressive actions are needed to improve our image and the way our citizens think about the state. Additional support for the business community will do just that. With a $10 billion surplus, strategic investments can and should be made.