TRENTON, NJ — Assemblyman Christopher DePhillips vocally opposed Governor Phil Murphy’s newly proposed corporate surtax, labeling it a “transit fee” in the governor’s recent budget announcement.
DePhillips argues that this tax, aimed at businesses earning over $10 million, threatens the state’s economic stability and contradicts the national trend of reducing corporate taxes.
The proposal introduces a 2.5% surcharge on high-earning businesses to mitigate NJ Transit’s financial shortfall. This move comes as the previous 2.5% surtax on companies with earnings over $1 million expired at the end of December, a measure that had positioned New Jersey’s corporate tax rate as the highest in the country at 11.5%.
DePhillips warns that this policy may drive businesses, and consequently, jobs, out of the state, exacerbating the financial strain on New Jersey families and potentially leading to increased consumer costs. He contends that the current administration’s continuous tax hikes and spending are unsustainable, forecasting negative repercussions for all New Jersey residents.