Bucco: Governor Murphy Must Keep His Promise and Let CBT Surtax Sunset
Senate Minority Leader Anthony M. Bucco said Governor Murphy must keep his promise and allow the Corporate Business Tax (CBT) Surcharge to sunset at the end of 2023 as reports indicate some Democrats in the Legislature are pushing for another extension.
“It is very important that Governor Murphy stays true to his word and allows the CBT surtax to finally expire. This unnecessary tax has hurt businesses and contributed to New Jersey’s worst-in-the-nation business tax climate,” said Bucco (R-25). “At this point, businesses are operating under the expectation that this surtax will expire at the end of this year. It would be extremely irresponsible for Governor Murphy to break his promise.”
According to recent reports, many Democrats have proposed extending the tax for various purposes even as State spending has increased 60%.
The Tax Foundation ranked New Jersey as the worst state for businesses in their 2024 State Business Tax Climate Index. According to their report, New Jersey has the highest-rate corporate income taxes, one of the highest-rate individual income taxes, and one of the highest property tax burdens in the nation. Neighboring states like Delaware (21) and Pennsylvania (31) ranked significantly higher than New Jersey.
“Allowing the CBT surtax to expire should be the first step in improving our tax climate. There is certainly more work that needs to be done to improve New Jersey’s image as a preferred place to do business and to make the State more competitive with our neighboring states,” Bucco concluded.