Governor’s Budget Proposal Rests on Shaky Foundation With Corporate Tax Cuts

Eliminating the Corporate Business Tax Surcharge will blow a $1 billion hole in the state budget.

Published on Feb 28, 2023 in Tax and Budget

Earlier today, Governor Murphy unveiled his FY 2024 state budget, proposing new investments in pre-K-12 education, property tax relief, tax credits for working families, and more. The budget also proposes eliminating the Corporate Business Tax surcharge, which would cost the state $1 billion per year. In response to the budget address, New Jersey Policy Perspective (NJPP) released the following statement.

Nicole Rodriguez, President, NJPP:

“The governor’s budget proposal wisely invests in the building blocks of a strong economy, from public schools to public health, but these investments rest on a shaky foundation. By giving a massive tax cut to the most profitable corporations in the world, there’s no promise that the state will be able to fund these public needs in the future.

“The long-term success of New Jersey requires reliable and sustainable sources of revenue to keep state government running and to fund the vital public services and infrastructure we all rely on. By eliminating the Corporate Business Tax surcharge, lawmakers will blow an even bigger hole in the state budget than previously thought. Buried in the governor’s budget proposal is a new estimate for how much this corporate tax cut will cost the state, coming in at a whopping $1 billion next year.

“We should know by now that trickle-down tax cuts do not work. We learned this lesson the hard way during the Christie administration, where big tax cuts for the wealthy and well-connected led to the hollowing out of public services and exacerbated income and wealth inequality.

“State leaders can’t have it both ways. A promise to deliver the supports and services our communities need requires a smart tax code that not only responds to current economic conditions but works in our collective favor. The “next New Jersey” doesn’t have a chance without tackling our rigged tax code head-on. That’s the hard work we expect from elected officials, and it only pays off if they prioritize the needs of the many over those of a chosen few.”


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