The New Jersey Chamber of Commerce wants to cap dividends taxation at $5 million per legal entity.
If the state does implement a new corporate business tax as proposed by legislative leaders, the cap on dividend taxes would minimize the CBT’s adverse effects, according to the Chamber.
“Tax experts from member companies of the state chamber have been working with government leaders to minimize the proposed CBT increase,” the Chamber said Thursday. “This increase is a complex proposal with some very damaging consequences to New Jersey’s economy and to the state’s largest employers headquartered here or with a large presence here.”
One part of the proposed CBT involves something known as a repatriation tax, placed on funds companies move back to the U.S. from overseas following some beneficial federal tax reforms.
“Bringing back 30 years of dividends and assets into the country, the idea was that ‘OK, it’s going to be a lot of money, let’s tax it’,” said Chamber President Tom Bracken.
Lawmakers expect $200 million from the one-time tax, but Bracken said “legislative miscalculations” could result in billions of dollars in unwise levies.