TRENTON, N.J. – Assemblyman Christopher DePhillips is challenging Gov. Phil Murphy’s misleading claims that his fiscal year 2024 budget proposal cuts taxes by allowing the corporate business tax surcharge to sunset.
“Governor Murphy is taking a victory lap for following the law to drop the surcharge on corporations at the end of the year. I’m sorry, but he doesn’t get a star for following through on a statutory promise,” DePhillips (R-Bergen) said. “He falsely claims that this budget includes a corporate tax cut when in reality it just doesn’t raise a new one. The truth is that New Jersey is still dead last for business climate and this administration has not helped make the state any more competitive.”
Murphy publicly stated that he is committed to ending the 2.5% corporate business tax surcharge on businesses earning over $1 million by the end of this year – as is dictated by the legislation passed by Democrats in 2020. The surcharge was first passed in 2018 and scheduled to phase down to 10.5% in 2020 and back to 9% in 2021, but it was extended despite staunch Republican opposition.
“It is imperative that we put policies in place to attract and retain business and that can only be accomplished by actually cutting our corporate business tax, not just letting the surcharge sunset,” DePhillips said. “Pennsylvania is on a path to gradually lower their corporate rate to 4.99% by 2031 while New Jersey will still be charging one of the top rates in the nation. I am once again renewing my calls on Legislative leadership to post my bill for consideration, so we can improve our economy and keep families in the Garden State.”
DePhillips’ bill (A1146) would gradually lower the New Jersey corporate business tax from 9% to 2.5% in four years – matching North Carolina’s lowest-in-the-nation rate. The rate for businesses making less than $100,000 would be reduced from 7% to 2.5% in just two years.
“The extra revenue from the high corporate tax rate is not worth the fall out. We are hurting hardworking, regular families,” DePhillips argued. “The best way to stem outbound migration is to promote a vibrant economy with tax cuts, not more spending and disingenuous talking points.”