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Eliminating the Corporate Business Tax (CBT) surcharge would cost the state at least $664 million in annual revenue, according to a report from NJPP Senior Policy Analyst Sheila Reynertson released earlier this week. The report finds that corporations with more than $100 million in annual profit would receive a $5 million tax cut, on average, while 98 percent of businesses in the state would receive nothing. The report also outlines how the surcharge is paid by businesses operating in New Jersey, including multi-national corporations that aren’t headquartered here like Amazon, Walmart, and Bank of America. Giving the biggest and most profitable corporations on the planet a huge tax cut right as federal pandemic relief funds are set to expire should make it difficult to balance future budgets and maintain investments in areas like education and transit infrastructure. Not good! [NJ Spotlight News / Rhonda Shaffler]
Now for some good news: Assemblywoman Verlina Reynolds-Jackson (D-Trenton) introduced legislation on Monday that would expand New Jersey’s Child Tax Credit. The bill would double the maximum tax credit for children under 6 years old to $1,000 and expand eligibility for the program to include kids up to 11 years old. The bill is similar to one that NJPP Senior Policy Analyst Peter Chen proposed in a report last month where he calculated that an expanded Child Tax Credit would help 441,000 families — and 713,000 children — across the state. “This bill would provide much-needed relief for families by expanding the Child Tax Credit with larger benefits and so more children qualify,” said bill sponsor Verlina Reynolds-Jackson. “When families have the resources they need, it sets their kids up for success now and later in life.” [NorthJersey.com / Katie Sobko]
Private prison giant CoreCivic generated a whopping $1.9 billion in profit in 2021, the same year that New Jersey’s ban on immigration detention went into effect. Now, in 2023, the world’s largest private prison corporation filed a legal challenge to the landmark law, claiming that not being able to renew their ICE contract at the Elizabeth Detention Center would hurt their profits. The New Jersey Alliance for Immigrant Justice criticized the lawsuit, comparing it to other attempts by mega-corporations to profit off the exploitation of immigrants. “Immigrant communities and New Jersey — we are not going to be threatened by greedy, for-profit corporations,” said Amy Torres, Executive Director of the Alliance. [Documented / Giulia McDonnell Nieto del Rio]
Despite Governor Murphy announcing his new Energy Master Plan, a proposal for a new power plant still has a chance to move forward in the Ironbound neighborhood of Newark, which is home to 50,000 residents and one of several places the state classifies as an “environmentally overburdened community” (EOC). While New Jersey also finalizes rules for an environmental justice law enacted in 2020, a potential loophole would allow the proposed facility to open if it brings significant economic value to a community. NJPP Policy Analyst Alex Ambrose recommends that Governor Murphy end the Clean Energy Fund raids to more easily reach climate goals. “Murphy made a promise that he would immediately end the raids on the Clean Energy Fund. And he has not fulfilled that promise yet. So in two weeks is his budget address and we will see if he finally fulfills that promise because that source of funding will help reach a lot of his [climate goals,]” she said. [WHYY / Tennyson Donyéa]
In our latest TikTok, Alex Ambrose breaks down how state lawmakers have raided $2 billion from the Clean Energy Fund since 2010. Check out the math on how those funds could have been spent, from electric buses to bagels by clicking the link. [NJPP / TikTok]
Pets of NJPP
Meet Astro, the newest member of the Mir household. His guardian shares that his name should have been Velcro as he’s attached to their hip. He likes to run, chase, and play with his sister cat, Aria, who is not his biggest fan. Woof!
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