On Tax Day, Working Families, Small Businesses and Labor Groups Protest a Looming Corporate Tax Cut that will Hurt NJ
During the rally, community members demand New Jersey legislature invest in working class communities instead of Governor Murphy’s Corporate Tax cut.
You can find the livestream of the rally here.
(New Jersey – Newark) – Today, on Tax Day, working class families, labor unions, small businesses and For the Many NJ coalition hosted a rally and a petition drive calling on New Jersey elected officials and Governor Murphy to stop a massive tax cut for wealthy multinational corporations like Amazon, Starbucks and Walmart. Low-wage workers and parents also called for investment in vital services, including funding for NJTransit, additional affordable housing, health care expansion and strong public schools.
Teo Gomez, an Elizabeth resident and member of Make the Road New Jersey, said since the pandemic hit, her family had been struggling to make ends meet. “The high cost of living has impacted us tremendously. My family relies on vital public services like public transportation, after school programs and public hospitals to get by. The worst thing that can happen to us right now is that the state takes away funding from these services, which makes a big difference in families like ours. Instead of handing out a massive tax cut to the biggest corporations that profit from us, Governor Phil Murphy should invest in improving public services working families like mine use every day. On tax day, we are calling on Gov. Murphy to stop the massive tax cut to Amazon and instead invest in our communities.”
New Jersey State Director of 32BJ SEIU Kevin Brown said: “We urge Governor
Murphy to reconsider his decision to abolish the CBT. For years, that tax has played a
crucial role in compelling the wealthiest businesses to pay their fair share. There is
simply no excuse for abolishing the CBT and letting the wealthiest corporations get
away with this. There is no way that the state of New Jersey will be able to entirely
make up for a revenue shortfall of approximately $1 billion. We can only hope that the
governor reverses course. If he doesn’t, then the most vulnerable communities will most
likely bear the brunt of cuts in education, affordable housing and other vital assistance.”
New Jersey Main Street Alliance Steering Committee Member and President of the Board of The Business Education Fund J. Kelly Conklin said: “At New Jersey Main Street Alliance we know tax policy is not a one way street. For too long special interest groups funded by major corporations have promoted the idea that what’s good for big business is good for all business. And top of the “good” for business agenda is tax cuts. That simply is untrue. Public investment in education, infrastructure, families and a healthy sustainable environment are costs of doing business we all must bear. Healthy communities are the markets that sustain and grow small businesses and when those with the most pay the least it is small business, our employees and our communities that are left to make up the difference. It comes down to this: When the bigs don’t pay we all pay the consequences. Close loopholes, maintain and sustain the CBT surcharge.”
New Jersey Citizen Action Network Director of Policy and Advocacy Maura Collinsgru said: “A fairer and more affordable New Jersey for all, as lawmakers continue to promote, is not possible unless the wealthy and corporations pay their fair share. Cutting taxes for the most well-off individuals and businesses is not zero-sum – it results in cutbacks to essential services like health care, education, housing, and other support programs our residents need to live, work, and thrive in New Jersey. It’s time we break the cycle of creating tax breaks for the ultra-wealthy with little to no benefit for ordinary New Jerseyans. Lawmakers must put the needs of our families and communities above corporations if we are to reach a New Jersey that is truly fair and affordable for all.”
New Jersey Policy Perspective Senior Policy Analyst Peter Chen said: “A billion-dollar tax cut for big multinational corporations hurts our state’s bottom line and rewards corporate shareholders at the expense of everyday New Jerseyans. To pay for strong investments in schools, health care, and communities, the state needs stable revenues and fair taxation of the companies profiting off of New Jersey’s consumers and workers. Instead of handing a gift-wrapped tax cut to the world’s wealthiest businesses, the state’s leaders could instead be expanding preschool to more children, funding New Jersey Transit, or helping more students attend college. At a time of soaring corporate profits that have contributed to record inflation, now is the time to make wealthy businesses pay what they owe.”
Democracy Policy Analyst for the League of Women Voters of New Jersey Philip Hensley said,“This Tax Day, we raise our voices with our For the Many coalition partners to tell Governor Murphy and the legislature not to cut taxes on billion-dollar corporations, but to instead make investments in our communities. Instead of cutting taxes for the wealthiest few, New Jersey should be investing in vital services like public education and childcare, as well as in improved voter education programs and our elections infrastructure.”
Gov. Murphy announced his commitment to ending the Corporate Business Tax (CBT) surcharge by the end of the year. The loss of revenue by ending the CBT will cost New Jersey “at least $1 billion in annual revenue, threatening the state’s ability to sustainably fund programs and infrastructure that families, communities, and businesses rely on,” according to a report by the New Jersey Policy Perspective.
The CBT is the third largest tax revenue in the state and supports vital public services including transportation infrastructure, strong pre-K-12 schools, and affordable housing – investments that make the state an attractive place to raise a family or start a business. Ending the CBT will affect several vital programs including funding cuts to many school districts, health care services and major improvements to city facilities and infrastructure.
The CBT surcharge will impact the wealthiest corporations making $1 million in profits – a 2.5 percent tax on every dollar of net profit above $1 million. Businesses that make below the $1 million profit threshold, about 98 percent of New Jersey businesses, will not be affected by the surcharge. Over 2,500 corporations have paid the surcharge according to the most recent data. Targeting multinational corporations making billions of dollars in profits, the surcharge is a sustainable revenue for the state.