Today, New Jersey’s Treasury Department released new tax collection data showing revenues continue to lag behind collections over the same period in 2022, as well as behind projected revenues for the current fiscal year. Year-to-date, revenues are down $452.9 million from the prior year. In response to this new data and worrying trend, New Jersey Policy Perspective (NJPP) releases the following statement.
Peter Chen, Senior Policy Analyst, NJPP:
“The latest Treasury report shows exactly what budget experts have warned: The state will need more revenue to balance its books and pay for the public investments that keep our communities running. Lower-than-expected revenue collections are always a concern, but this latest trend is even more alarming since the current budget was already set to spend more money than the state would collect. This structural deficit threatens New Jersey’s fiscal health and will make it harder to fund public schools, NJ Transit, child care, and other areas supported by federal pandemic aid that’s about to expire.
“One obvious way for lawmakers to plug this budget hole would be extending the corporate business tax surcharge on companies with over $1 million in annual profits. This revenue source is not only needed to balance the state budget, but also a fair and targeted tax on the world’s wealthiest corporations earning record profits.”
Read NJPP’s latest budget report, Red Flags Amid a Sea of Green, for more information on New Jersey’s structural deficit.
Read NJPP’s report, Stop the Sunset, for more information on the Corporate Business Tax surcharge.
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