By Tom Bracken
There has been a lot of discussion about the proposed 2.5% Corporate Transit Fee (CTF) on New Jersey’s largest employers and we, along with many of our trade association colleagues, are totally against it and would like to see it eliminated. Everyone agrees NJ Transit needs to get its fiscal house in order, however, the employer community stands firm the CTF will never be a viable solution. Thanks to NJ Transit’s increased funding sources, policymakers can instead spend the next year doing a deep dive into the agency’s true financial position and needs – and not rush through a proposal during budget season with many negative economic consequences.
The U.S. News & World Report last week released its rankings of the best states – and for New Jersey, there was good news and bad news.
The magazine named New Jersey the 14th best state overall – positive news. But when the study examined fiscal stability, a metric important to the state’s business environment – it ranks New Jersey a dismal 48th. This follows a CNBC study last year that placed New Jersey a much-improved 19th overall on its list of “Top States for Business.” But it too acknowledged critical shortcomings – ranking New Jersey 44th in cost-effectiveness and 48th in business-friendliness.
The N.J. Chamber of Commerce is being joined by over 40 local and regional chambers of commerce statewide to oppose the proposed "Corporate Transit Fee" on New Jersey's large companies, and the proposed "buck-a-truck" tax on trucks that deliver goods to and from warehouses in the state. Both measures are contained in the proposed state budget that was put forward by Gov. Murphy and is currently being considered by the state Legislature.
The New Jersey Chamber of Commerce Board of Directors elected four new board members to three-year terms at its April meeting.
The new board members are:
It has been over six weeks since Gov. Phil Murphy proposed a highly punitive business tax increase on the state’s largest companies in his fiscal 2025 state budget. Essentially, he is saying New Jersey should replace the temporary 2.5% Corporate Business Tax surcharge that expired at the end of 2023, and repackage it as a Corporate Transit Fee. This tax hike would affect New Jersey’s largest job creators, tax revenue producers and philanthropic givers — in a very bad way, as would the “Buck a Truck” proposal, which is an unnecessary nuisance tax on the state’s burgeoning logistics industry. Moreover, the proposals would hurt the progress New Jersey has been making as a desirable location to run a business.
Last week, we had the privilege of hosting the remarkable ReNew Jersey Business Summit & Expo in Atlantic City, attended by 850 leaders in business, nonprofits, government, and academia. The energy, insights and optimism shared during the Summit were inspiring.
It reinforced a resounding message: New Jersey is an exceptional place to conduct business.
In fact, Ralph LaRossa, the president and chief executive officer of PSEG and Chair of Choose New Jersey, when referencing New Jersey’s attractiveness, as evidenced by the Garden State being awarded the World Cup Final said, “The world chose New Jersey, So maybe you should choose New Jersey.” He was speaking to companies considering investments in the Garden State.