Category: Statement

Giving Businesses Tax Credits for Hybrid Workers Undermines the Very Purpose of the Tax Credits

Posted on by Peter Chen

State lawmakers are fast-tracking a new bill (A4046) that would allow businesses to claim tax subsidies for hiring workers at New Jersey locations, even if they work a majority of the time from home. Similar legislation was fast-tracked during the recent lame duck session and failed to advance after lawmakers criticized the proposal as “counter-intuitive,” and warned that it would have unintended consequences. In response to the proposal, New Jersey Policy Perspective (NJPP) issues the following statement.

Peter Chen, Senior Policy Analyst, NJPP:

“Allowing companies to claim tax credits for employees that aren’t in the office undermines the very purpose of giving out these tax credits in the first place. In theory, the economic benefits are supposed to come from workers going out to buy lunch and spend money at other shops near the office, but this will never happen if employees are working at home instead. Corporate tax credits already have a weak return on investment for communities, and this will only weaken it further. There is no reason for the state and its taxpayers to prop up businesses with public dollars when they aren’t benefiting the broader public.

“A nominal contribution to affordable housing trust funds does not make up for the cost of handing out these tax credits. If this was really about creating more affordable housing, the state should do so directly rather than hand corporations a check only to get a fraction of it back.”

# # #

Budget Proposal Rightly Asks Big Business To Pay for Critical Infrastructure, But More is Needed

Posted on by Nicole Rodriguez

Earlier today, Governor Murphy unveiled his budget proposal for Fiscal Year 2025. The proposal includes a new corporate transit fee on companies earning more than $10 million in annual profits and dedicates those funds to NJ Transit, which would be the first-ever dedicated source of funding in the agency’s history. The budget also includes another full pension payment and would fully fund the school funding formula for the first time in New Jersey history. However, the budget continues to dip into the state’s surplus to cover expenses, highlighting a need for new revenue sources. In response to the budget proposal, New Jersey Policy Perspective (NJPP) releases the following statement.

Nicole Rodriguez, President, NJPP:

“The governor’s budget proposal rightly asks the world’s biggest corporations to pay for the infrastructure that helps generate their record breaking profits. In this current era of rising inequality, if corporations are going to swallow a lion’s share of economic growth, they shouldn’t expect to pay less in taxes and have working families make up the difference. The new corporate transit fee is a testament to the tireless advocacy of workers, transit riders, advocates, and local elected officials in every corner of the state who fought for a fairer tax code.

“This budget proposal still has some red flags that lawmakers will have to address. Even with a strong commitment to long standing funding needs like pensions and schools, the budget proposal still erodes the state’s surplus to fund basic operations. Meanwhile, most programs that promote affordability for low- and moderate-income households like the Child Tax Credit and WorkFirst New Jersey received flat funding – a functional cut in a time of inflation. As New Jerseyans face down fare hikes and cost increases, the onus now shifts to the Legislature to commit to a full reinstatement of the corporate surcharge make the state affordable for all.”

Read NJPP’s latest budget analysis, What to Look for in the New Jersey Budget for Fiscal Year 2025.

# # #

Gov. Murphy’s NJ Transit Funding Proposal Would Put Agency Back on Track

Posted on by Alex Ambrose

Later today, Governor Murphy will announce the first-ever dedicated source of funding for NJ Transit: A new Corporate Transit Fee of 2.5 percent on corporations with more than $10 million in annual profit. The tax is a scaled-down version of the Corporation Business Tax surcharge on corporations with more than $1 million in annual profit. The new tax is estimated to generate $800 million in annual revenue. Last year, New Jersey Policy Perspective (NJPP) published a report on the benefits of using the corporate surcharge as a dedicated source of funding for NJ Transit, which remains the only transit agency of its kind without dedicated public funding. In response to the new proposal to fund NJ Transit, NJPP releases the following statement.

Alex Ambrose, Policy Analyst:

“It’s hard to overstate how big of a deal this is for transit riders and the state as a whole. The governor’s proposal would finally provide stable, dedicated funding to an agency that’s never had it, setting a strong foundation to protect NJ Transit now and in the future. This is exactly the type of thinking needed to get NJ Transit back on track, and it’s long past time that big corporations pay for the infrastructure that helps them generate their record-breaking profits. At the same time, we can’t forget that riders are staring down a potential double-digit fare hike, and the agency is still raiding its capital budget, so there’s a strong argument for bringing back the full corporate surcharge to spare commuters from shouldering that burden.”

Read NJPP’s report, Getting Back on Track: Fully Fund NJ Transit by Taxing Big Corporations.

###

For the Many NJ: Governor Murphy Gives Ultra Wealthy Corporations $1 Billion, Passes Cost to Transit Riders

Posted on by NJPP Staff

New Jersey Transit announced their plan today to make up for budget shortfalls, including a $119 million shortfall in fiscal year 2025, by raising fares. This comes on the heels of Governor Murphy’s decision to deliver a $1 billion tax cut to the wealthiest corporations in the state by refusing to renew the Corporate Business Tax surtax earlier this month. For the Many NJ releases the following statement in response:

Eric Benson, Campaign Director, For The Many NJ:

“Fare hikes on everyday New Jerseyans does nothing to make the state more affordable and shows why we need to have fair sustainable revenue like the Corporation Business Tax surtax. While big corporations are getting $1 billion in tax cuts, New Jersey’s leaders have no plan to fill budget holes and instead are throwing the costs to working families.

If the Governor and legislature don’t get serious about raising revenues from the wealthy and powerful, it will be the working- and middle-class residents of the state who end up paying the price.”

# # #

For The Many NJ is a statewide coalition of more than 30 organizations working to expand funding for essential services and improve budget practices to meet current and future needs, especially for communities that have been historically left behind.

Fare Hikes Are Not the Solution to NJ Transit’s Financial Woes

Posted on by Alex Ambrose

Today, New Jersey transportation officials announced a 15 percent increase in fares for NJ Transit riders as well as a 3 percent annual increase in subsequent years. In a report released in September, New Jersey Policy Perspective (NJPP) outlines the benefits of using the Corporation Business Tax surcharge to fully fund NJ Transit and prevent catastrophic service cuts and fare hikes. The corporate surcharge, which expired on December 31, 2023, targeted the top two percent of corporations with more than $1 million in annual profits, bringing in $1 billion in revenue per year. In response to the proposal, NJPP releases the following statement:

Alex Ambrose, Policy Analyst:

“Drastic fare hikes won’t solve NJ Transit’s structural financial problems, especially when the agency has never had a dedicated funding source. Forcing riders to foot the bill and relying on farebox revenue to bridge the financial gap is not just inequitable, it’s bad policy. Policymakers chose corporations over New Jersey’s working families when they gave ultra-wealthy businesses like Amazon and Walmart a $1 billion tax cut. To prevent additional drastic fare hikes and service cuts, reinstating the Corporation Business Tax surcharge is the smart and practical way to fund NJ Transit. NJ Transit should not operate on the basis of revenue like a business; instead, it should be treated as a public good, and given the investments it needs to thrive.”

###

Governor’s Stronger and Fairer Economy Can’t Overlook Fiscal Elephant

Posted on by Nicole Rodriguez

Today, Governor Phil Murphy delivered his sixth annual State of the State address, where he focused on ways to make New Jersey the best place anywhere to raise a family. The speech highlighted the critical role of state government in building an economy that works for everyone, but the governor did not address how the state would pay for these investments after lawmakers allowed the Corporate Business Tax surcharge to expire at the start of the year. In response to the address, New Jersey Policy Perspective (NJPP) released the following statement.

Nicole Rodriguez, President, NJPP:

“There’s a lot to like in Governor Murphy’s address, from protecting rights and freedoms to promoting affordability and economic security. This approach to governing recognizes the critical role of state government in making New Jersey the best place to live, go to school, raise a family, or start a business. The last six years are more than enough proof that this model works, and that we can strengthen public services and have a booming economy at the same time.

“But just as the governor attributed this success to confronting New Jersey’s financial challenges, his address overlooks one giant elephant in the room that could unravel it all. As it stands, New Jersey is not raising enough revenue to balance its current budget, and the state’s financial outlook is made worse thanks to a new billion-dollar corporate tax cut that just went into effect.

“By scrapping the corporate tax surcharge for big players like Amazon and Walmart, state lawmakers jeopardize the future of the same investments the governor celebrated in his remarks. To keep up the momentum and build an economy that is truly stronger and fairer for all, Governor Murphy and the Legislature must undo this tax cut for the most profitable corporations in the world.”

# # #

State of New Jersey’s Finances Takes a $1 Billion Hit in New Year

Posted on by NJPP Staff

With Governor Murphy set to deliver his 2024 State of the State Address next week, the state of New Jersey’s finances have taken a major blow with the sunset of the corporate surcharge on January 1. The Corporate Business Tax surcharge only applies to the most profitable corporations in the world with more than $1 million in profits — including large multinational corporations like Amazon and Walmart. Without the corporate surcharge, New Jersey will lose $1 billion in revenue annually. In response to the surcharge expiring and in anticipation of the governor’s address, For The Many NJ releases the following statement.

Eric Benson, Campaign Director, For The Many NJ:

“The state of New Jersey’s finances took a billion-dollar hit in the new year thanks to this new corporate tax cut for companies like Amazon and Walmart. State lawmakers will now have to figure out how to plug this budget hole and avoid dramatic cuts to public schools, NJ Transit, health care, and the many other public services that keep the state running. With many families struggling to keep up with rising costs and federal pandemic aid about to expire, this blow to the state budget couldn’t have come at a worse time. The state desperately needs this revenue to balance its budget, and the corporate surcharge remains the fairest way to fund government without affecting families or small businesses. We have to remember that this surcharge is highly targeted to the select few companies that can afford it most, including multinational corporations that aren’t even headquartered here, and if they aren’t paying their fair share everyone else will have to pay more.”

# # #

For The Many NJ is a statewide coalition of more than 30 organizations working to expand funding for essential services and improve budget practices to meet current and future needs, especially for communities that have been historically left behind.

New Jersey Should Embody Its Values by Supporting Immigrants and Asylum Seekers

Posted on by Marleina Ubel

This week, at the direction of Texas’ Republican Governor Greg Abbott, buses of asylum seekers and immigrant families arrived unannounced at transit hubs across New Jersey. In response to the uncoordinated drop offs and reactions from local officials, New Jersey Policy Perspective (NJPP) releases the following statement.

Marleina Ubel, Senior Policy Analyst, NJPP:

“This is a humanitarian crisis created by Republican governors who are using asylum seekers and immigrant families to score cheap political points. We have to remember that, regardless of where someone was born or what their immigration status is, these are human beings who possess inherent dignity and basic human rights.

“Ideally, the federal government would play a more active role in coordinating the relocation of immigrants, but that shouldn’t stop New Jersey from doing the right thing for families fleeing hardship and seeking safety.

“New Jersey has a rich history of welcoming immigrants, and this is an opportunity for us to embody our values of fairness and inclusivity. When we say that hate has no home here, this is more than just a saying. It’s about supporting the most vulnerable among us and focusing on solutions rooted in solidarity, not xenophobia or bias.”

# # #

Revenue Collections Nearly $400 Million Behind Last Year

Posted on by Peter Chen

On Thursday, New Jersey’s Treasury Department released new tax collection data for November showing that revenues remain lower than at this point in 2022, and even further behind projected revenues for the current fiscal year. Year-to-date, revenues are down $385.1 million (2.8 percent) from the prior year. Compared to projected tax collections, revenues are behind by 4.3 percent for the current fiscal year. In response to this new data, New Jersey Policy Perspective (NJPP) releases the following statement.

Peter Chen, Senior Policy Analyst (NJPP):

“Tax collections are still coming in behind projections and time is running out for the state to make it up. What the data doesn’t show is that this shortfall will only get worse in the new year if lawmakers let the corporate surcharge expire and hand a billion-dollar tax cut to the likes of Amazon and Walmart. Last year’s record-breaking tax collections were clearly an outlier, and now is not the time to cut the corporate tax rate. This is more proof that the state will need new revenue to balance its current budget and prevent cuts to NJ Transit, public schools, and other public services and programs.”

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.

# # #

Fast-Tracked Bill Loosens Tax Credit Requirements for Big Developers

Posted on by Peter Chen

This afternoon, the Senate Budget and Appropriations Committee quickly amended and approved a new, complex, and technical 68-page bill (S4175/A5833) that would further roll back requirements on the Aspire tax subsidy program for big developers administered by the New Jersey Economic Development Authority (NJEDA). Despite already loosening requirements in the June budget session six months ago and with regulations from those changes just recently approved, the Legislature is nonetheless fast-tracking even more changes that would benefit developers at the expense of the communities and families these projects are supposed to benefit. In response to the bill being fast-tracked in the final weeks of the legislative session, New Jersey Policy Perspective (NJPP) releases the following statement.

Peter Chen, Senior Policy Analyst, NJPP:

“This is another last-minute lame-duck special that will benefit big developers at the expense of everyone else. These changes would turn a tax credit program aimed at revitalizing communities into one that funds unpopular warehouse projects, eliminates affordable housing requirements for family units, and subsidizes parking lots.

“New Jersey should have learned its lesson that loosening rules on corporate tax credits leads to bad development and wasted state dollars. Instead, the Legislature is poised to repeat mistakes of the past that led to years of audits and investigations.

“Major changes in tax credits worth hundreds of millions of dollars should undergo robust hearings and public comment so we can all assess what they would actually accomplish, what they would cost, and who would benefit.”

Changes in the bill include, but are not limited to:

  • Providing tax credits for unpopular warehouse projects, which seem to have no shortage of funding without state assistance
  • Eliminating affordable housing requirements for family units (3-bedrooms), a major shortage in most rental markets
  • Subsidizing parking lots over actual commercial space and economic development
  • Creating a loan program for developers backed by tax credits, all approved by the same agency
  • Increasing the monetary value of tax credits through various financial changes, including:
    • Allowing recipients to carry forward their credits to future tax years
    • Allowing for transfer of credits
    • Making the credits tax-free for corporate and income tax
  • Weakening requirements for community benefit agreements
  • Limiting fees that NJEDA can charge for program administration.

# # #

«« Previous Posts∞Older Posts »»