TRENTON, N.J. – At 10.05% (the product of a temporary surcharge)? New Jersey’s current corporate business tax (CBT) is the second highest in the nation. It’s also considerably higher than New York’s 6.5% rate.
Three legislators – Republican Assembly members Christopher DePhillips, John DiMaio, and Serena DiMaso – want to bring it down to 2.5%
“North Carolina lowered their taxes in 2013 while New Jersey decided to pick winners and losers,” said DiMaio (R-Warren). “In the years after, North Carolina’s economy boomed and New Jersey was one of the nation’s slowest growing economies. Cutting taxes creates jobs and grows the economy, and that’s what this bill will do.”
Their proposal – A3754 – would bring the 7.5% and 6.5% CBT rates for businesses earning under $100,000 down to 3.5% and then 2.5% over two years. Businesses earning more than $100,000 would drop from 9% to 2.% over the course of four years.
The legislators point to North Carolina’s 2.5% corporate income tax; the state experienced fastest-in-the-nation GDP growth and a rapidly growing population through 2013 and most of 2015 after reforming its own tax code.
“New Jersey is lagging behind our neighbors because we are hindering our businesses with absurd tax levels,” added DiMaso (R-Monmouth). “Corporations generally don’t want to move here because we are considered the worst state to do business. We want to end that bad reputation and this is the first step.”
New Jersey consistently earns the dubious distinction of one of the nation’s worst business climate states.