On Friday, a diverse coalition of 50 advocacy organizations, labor unions, and community groups sent an open letter to Governor Murphy, Senate President Scutari, and Assembly Speaker Coughlin urging them to extend the Corporate Business Tax surcharge on the world’s most profitable corporations.
With tax collections nearly $400 million behind last year, state lawmakers will need more revenue to balance the state budget and avoid drastic cuts to NJ Transit, public school funding, affordable housing, child care, tax credits for working families, and much more.
“As we approach the end of a legislative session with lower revenues and a potential recession on the horizon, this is exactly the wrong time to be giving the most profitable corporations a $1 billion tax cut. Such a gift for corporations and their shareholders takes away resources from our schools and infrastructure and undermines funding for areas that promote opportunity for all: affordable housing, quality health care, reliable mass transit, and clean energy,” the letter states.
Earlier this month, Assemblyman Tom Giblin (D-Essex) introduced legislation (A5878) that would maintain the Corporate Business Tax surcharge and dedicate it to transit, education, and public employee health benefits. Senate President Nick Scutari (D-Union) also spoke out in support of maintaining the surcharge given the state of New Jersey’s finances.
The Corporate Business Tax surcharge is a 2.5 percent tax on corporations with profits exceeding $1 million. The surcharge is paid by the top 2 percent of the wealthiest corporations and is primarily paid by multinational corporations like Amazon and Walmart that make profits in New Jersey but are not headquartered here.
“Now is the time for more revenue, not less,” the letter states. “The wealthiest 2 percent of businesses should be paying more, not getting a tax cut when everyday New Jerseyans are struggling. We keep hearing about kitchen-table issues and middle-class New Jerseyans. How will corporate tax cuts help them? If we intend to invest in the programs we know make New Jersey an engine of economic growth and opportunity, the wealthy few must pay what they owe.”
The letter calls for lawmakers to extend the Corporate Business Tax surcharge before the end of the lame duck session so the state can continue investing in the public programs and services that benefit New Jersey’s families, communities, and the broader economy.
The letter was signed by 50 policy, advocacy, labor, and community organizations, including: 32BJ SEIU, ACLU of New Jersey, Communications Workers of America, Fair Share Housing Center, Latino Action Network, Make the Road New Jersey, New Jersey Citizen Action, New Jersey Education Association, New Jersey Institute for Social Justice, New Jersey Policy Perspective, New Jersey Working Families Party, Planned Parenthood Action Fund of New Jersey, Salvation and Social Justice, and the Sierra Club.
A copy of the letter can be read here.
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For The Many 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.
