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

Following a new corporate tax cut, New Jersey will have to figure out how to plug looming budget holes and avoid cuts in public services.

Published on Jan 5, 2024 in Tax and Budget

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.”

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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.

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