Letting the Corporate Business Tax Surcharge Expire Will Give a Huge Tax Cut to the Most Profitable Businesses

Allowing the Corporate Business Tax Surcharge to expire would give the biggest and most profitable corporations a $600 million tax cut.

Published on Jan 12, 2023 in Tax and Budget

In an interview with Bloomberg TV earlier today, Governor Murphy said that he plans to let the Corporate Business Tax (CBT) Surcharge expire at the end of the calendar year, giving the biggest and most profitable corporations a $600 million tax cut. The CBT surcharge is only paid by the top 2 percent of the wealthiest corporations operating in the state, including out-of-state corporations like Amazon and Walmart. This announcement comes one day after the governor’s State of the State address where he slammed states that hand massive tax cuts to wealthy individuals and mega-corporations. In response to the announcement, New Jersey Policy Perspective (NJPP) released the following statement.

Nicole Rodriguez, President, NJPP:

“This is a tax cut for some of the biggest businesses in the world, plain and simple. With corporate profits at record levels and millions of New Jersey families struggling to keep up with rising costs, this represents the absolute worst of trickle-down economics. To be clear, this would not benefit mom-and-pop businesses but corporations like Amazon and Walmart that make billions of dollars every year off the backs of low-paid workers.

“A day after the governor centered his State of the State address on creating opportunity for everyone, this tax cut will blow a hole in the state budget and make it even harder to fund the very programs and services that would do just that. New Jersey’s long-term economic and fiscal health will be in jeopardy if lawmakers allow more than half a billion dollars to go back into shareholders’ pockets rather than addressing the urgent needs of our communities.”

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