The New Jersey Chamber of Commerce is calling out members of the 'For the Many NJ' coalition for asking Gov. Murphy and the Legislature to renege on the state’s promise to sunset the Corporation Business Tax (CBT) surcharge at the end of 2023. The coalition is wrong on so many levels, the N.J. Chamber said.
"The Governor and the Legislature made a promise to our hard working job providers that the CBT surcharge would sunset at the end 2023," said Tom Bracken, president and CEO of the New Jersey Chamber of Commerce. "It seems 'For the Many NJ' coalition members do not believe that our state’s leaders should keep their word or honor their commitments. That erodes faith in government. As a result, all future promises would be seen as easily breakable.
"If New Jersey is to reach its economic potential, employers that provide residents with jobs and paychecks need stability and a predictable business environment. This involves trust in government. The 'For the Many NJ' coalition does not seem to care about this," said Bracken.
When passed by the state Legislature and signed by the governor in 2018, the legislation for the CBT surcharge was supposed to sunset in 2020. Then the pandemic hit, and it was extended. There is no compelling reason to extend it any longer, Bracken said.
"Integrity and trust in our leaders are paramount as we continue to rebuild the image of our state," said Bracken. "Not honoring commitments would cause investors, employers and business owners to lose the confidence and respect in our government officials that is expected when they make major investment decisions."
Bracken also asked the 30 organizations making up the ‘For the Many NJ’ coalition if their individual groups would so callously break promises. "For those asking our state leaders to renege on their commitments, do you not follow your own code of ethics that calls for your organizations to be truthful and to act in good faith when making commitments?" Bracken asked. "You’re asking the governor and the Legislature to basically renege on promises that your own codes of ethics would prevent you from doing."
It is critical that our government leaders be true to their word, and allow the surcharge to sunset, he said. "For those complaining about businesses not paying their fair share, even after the CBT surcharge expiries, New Jersey will still be in the top four in the nation, at 9%, in CBT rates," Bracken said. "In addition, many New Jersey companies must now adhere to the new Inflation Reduction Act rules and will be paying a 15% corporate alternative minimum tax, thus making tax relief from the sunset more vital.
"In order to fund social programs, the state needs to expand the economy and grow revenue," Bracken said. "Over the long term, raising taxes on companies will not accomplish that and, in fact, it might have the opposite effect."
