TRENTON, N.J. – Assemblyman Christopher DePhillips denounced Gov. Phil Murphy’s rebranded corporate surtax, announced as a transit fee in Tuesday’s budget message, and said applying it to higher earning businesses will still have devastating consequences for the state’s economy.
“Make no mistake, this so-called transit fee is the corporate business tax surcharge lite and it only exists to feed the Murphy administration’s insatiable appetite for spending taxpayers’ dollars,” DePhillips (R-Bergen) said. “While neighboring states are realizing the benefits of lowering their corporate taxes, New Jersey raises taxes and breaks commitments to the business community. The spending, the deficit and the constant tax increases are unsustainable. There will be a fallout and it will impact every resident in New Jersey.”
Murphy proposed a new 2.5% corporate surcharge Tuesday that would apply to businesses earning over $10 million to address NJ Transit’s budget deficit. The new hike replaces the 2.5% surtax on businesses earning over $1 million, which pushed New Jersey’s corporate tax rate to the highest in the nation at 11.5% and statutorily expired on Dec. 31.
“These big companies have the ability to easily relocate to a more business-friendly state, which will eat into New Jersey’s bottom line, but more importantly hurt hardworking families who will either be forced out of a job or out of New Jersey. The businesses that do stay will pass that increase onto consumers who are already struggling financially,” DePhillips said. “New Jersey cannot afford to keep Democrats in power.”