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.
NJ Chamber is Joined by 40 Local and Regional Chambers of Commerce to Oppose Business Tax Hikes. Read The Letter We Sent to Legislators
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 extends our deepest condolences on the passing of Rep. Donald Payne, Jr., a dedicated member of the New Jersey Congressional delegation who championed the cause of Essex County small businesses and tirelessly advocated for housing issues in the communities he represented. His presence at the Chamber's Walk to Washington and Congressional Reception in D.C. will be sorely missed, but his legacy of service and commitment will continue to inspire us all.
—Tom Bracken, President & CEO, New Jersey Chamber of Commerce
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.
Takeaways from Last Week’s ReNew Jersey Summit & Expo
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.
A plan to raise the state’s per-gallon gas tax by 1.9 cents per year over five years to fund the state highways, roads, bridges and other infrastructure projects has garnered the approval of the New Jersey Chamber of Commerce.
The recent release of a state Disparity Study by the Murphy administration has shed light on a longstanding issue in Trenton – the inequities in public contract opportunities for minority-, veteran-, and women-owned businesses in New Jersey. Examining five years of procurement data across goods and services, professional services, and construction, the 221-page report confirms what many already knew: A significant disparity exists.
The disparity study recognizes the need for immediate action in order for there to be more equity in government contracting for Minority and Women-Owned (MWBE) businesses. The imbalances outlined have long been articulated by those affected – and is the focus of one of the Chamber’s economic priorities that calls for equal opportunities for MWBEs when it comes to securing not only public but also private sector contracts. Increasing supplier diversity spending with MWBEs has economic and social benefits for all by enhancing competition, encouraging innovation, increasing job creation and supporting communities. Now it is time to move forward and have constructive dialogues and collaborations between the Administration and our business community colleagues to develop solutions that remedy the inequities that exist.
—Thomas Bracken, President & CEO, New Jersey Chamber of Commerce
To read the Governor's press release and view study, click here.
The Governor’s State of the State address emphasized affordability and continuing to grow a fair, strong and inclusive economy to create the best state to raise a family. He mentioned several times the need to “work together” to achieve those goals.