In an interview that aired earlier today on Reporters Roundtable, Senate President Nick Scutari (D-Union) proposed extending the Corporate Business Tax surcharge as a solution for NJ Transit’s looming $1 billion budget shortfall. The corporate surcharge, targeted to the top two percent of corporations with more than $1 million in annual profits, currently brings in $1 billion in revenue per year. In a report released in September, New Jersey Policy Perspective (NJPP) outlined the benefits of using the surcharge to fully fund NJ Transit and prevent catastrophic service cuts and fare hikes. In response to the Senate President’s comments, NJPP releases the following statement.
Alex Ambrose, Policy Analyst, NJPP:
“The Senate President is not exaggerating when he says that the state is in dire need of more revenue. With tax collections coming in lower than projected and NJ Transit facing a $1 billion shortfall, the only other option would be drastic service cuts and fare hikes that would hurt commuters and the broader economy.
“Keeping the corporate business tax surcharge should be a no-brainer. This is a modest tax targeted to the most profitable companies in the world, like Amazon and Walmart, that raises $1 billion every year. Instead of letting this tax expire at the end of the year, lawmakers should make it permanent and invest those funds in public services and infrastructure we all rely on. There isn’t another proposal out there that would raise this much revenue, all without affecting small businesses or working families.”
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