New Jersey’s dead-last business ranking demands legislative fix, Assemblyman DePhillips says
NEW JERSEY – For the sixth year in a row, the Tax Foundation ranked New Jersey last for overall business tax climate in their 2023 report –an annual index that shows how well states are structuring their tax systems., Assemblyman Christopher DePhillips said.
DePhillips, a longtime advocate for corporate tax reform, says the report corroborates his calls to lessen the tax burden, because it is a barrier to jobs and economic growth.
New Jersey’s 11.5% corporate income tax rate qualifies for the worst ranking among states that have such a tax. In 2018, New Jersey levied a 2.5% corporate business surcharge on businesses earning over $1 million. It is not scheduled to sunset until Jan. 1, 2024, DePhillips said.
“New Jersey can’t keep coming in last for business climate and remain competitive. Pennsylvania is on a path to gradually lower their corporate rate to 4.99% by 2031 while New Jersey charges a nation-high 11.5% rate. It is imperative that we put policies in place to attract and retain business and that starts by cutting our corporate business tax. I am calling on Legislative leadership again to post my bill for consideration,” DePhillips (R-Bergen) said.
DePhillips’ bill (A1146) would gradually lower the New Jersey corporate business tax from 11.5% to 2.5% in four years – matching North Carolina’s lowest-in-the-nation rate. The rate for businesses making less than $100,000 would be reduced in just two years.
“The extra revenue from the surcharge and high corporate tax rate is not worth the fall out,” DePhillips argued. “The more we continue to drive these businesses and corporations out of the state, the more we are going to hurt regular families.”
The Tax Foundation slammed New Jersey for having among the highest property tax burdens and individual income taxes in the country on top of the nation-high corporate income tax rate. Additionally, the report says, “the state levies an inheritance tax, and maintains some of the nation’s worst-structured individual income taxes.”
“New Jersey must cut taxes to create an environment that supports a vibrant economy with good-paying jobs. That is the best solution to stem outbound migration and brain drain. High taxes are only holding us back,” DePhillips said.
