Backroom Deal or Not, New Jersey Needs the Corporate Surcharge

New Jersey needs Corporate Business Tax surcharge revenue to balance the budget and continue paying for critical public services.

Published on Nov 28, 2023 in Tax and Budget

Earlier today, at a business and industry event, Governor Murphy reiterated his call to eliminate the Corporate Business Tax surcharge while also noting that the state is currently operating at a structural deficit as revenue collections continue to come in lower than projected. The 2.5 percent surcharge on corporate profits, which is only paid by companies that make more than $1 million in profit in New Jersey, brings in $1 billion in revenue and helps fund critical public services. In response to the governor’s remarks, New Jersey Policy Perspective (NJPP) releases the following statement.

Peter Chen, Senior Policy Analyst, NJPP:

“A backroom deal with the big business lobby doesn’t change the fact that New Jersey desperately needs this revenue to balance the budget and continue paying for schools and transit infrastructure. As the governor noted in his remarks, the state is operating at a structural deficit, which is neither sustainable nor fiscally responsible.

“Let’s not forget that the multinational corporations that pay the surcharge made record-breaking profits with this tax in place, so we have ample proof that they can afford it. The surcharge is primarily paid by companies like Amazon and Walmart, and they have no incentive to stop selling their products in New Jersey.”


Like this publication?

Please consider supporting NJPP.

Your support powers the research, communications, and partnership building necessary to make policy work for people, so every New Jerseyan can achieve their goal for a healthy and vibrant life.