Republicans introduce bill to lower N.J. business taxes

Republicans introduce bill to lower N.J. business taxes

It’s become an annual tradition to find New Jersey at the bottom of the Tax Foundation’s State Business Climate Index. The 2023 list (dropped several weeks ago) is no different)

Assemblyman Gerry Scharfenberger and Assemblywoman Victoria Flynn (R-13) of Monmouth County have introduced A4907 which, in the unlikely event it gets past the Democrat legislature and Governor Phil Murphy, would both decrease the state’s Corporate Business Tax (CBT) and terminate Business Surcharge Taxes.

“With New Jersey consistently rated near or last in the nation in business environment, it is imperative that we do something to improve business attraction and retention. Cutting the highest in the nation corporate business tax (CBT) would go a long way towards improving New Jersey for businesses to open, operate and flourish here,” said Assemblyman Scharfenberger. “It’s a multi-faceted approach and now more than ever we need to help our struggling local businesses and residents with real economic recovery proposals. A reduction in the CBT would increase revenues over time as more businesses would choose to open and expand in a more favorable economic climate, thus leading to a stronger economy that benefits all.”

“The current corporate tax rate disincentives business investment in New Jersey and forces NJ-based industries to move out-of-state when the financial burden becomes unsustainable. In fact, we know that other states are actively recruiting NJ corporations to set up their shops in more tax friendly areas,” added Flynn. “Members of the business community plead with state leaders to implement corporate tax reforms so that New Jersey businesses may be able to compete. We cannot continue down this path or we will face an assured fiscal disaster, wreaking havoc on residents as well as businesses.”

New Jersey’s CBT  is presently 9%; it would drop to 7.5% under the Republican proposal, and the current 2.5% surcharge would be scrapped altogether.

The measure is co-sponsored by Assemblyman Bob Auth (R-39) of Bergen County.