Garden State Times

Senate Minority Leader Anthony M. Bucco has called on Governor Murphy to uphold his promise and allow the Corporate Business Tax (CBT) Surcharge to expire at the end of 2023. Bucco emphasized the importance of fulfilling this commitment, stating, "It is very important that Governor Murphy stays true to his word and allows the CBT surtax to finally expire."

Bucco, a Republican representing the 25th district, expressed concerns about the negative impact of the CBT surtax on businesses in New Jersey. He highlighted the detrimental effects of the tax on the state's business tax climate, stating, "This unnecessary tax has hurt businesses and contributed to New Jersey’s worst-in-the-nation business tax climate."

Recent reports have indicated that some Democrats in the Legislature are considering extending the CBT surtax for various purposes, despite State spending having increased by 60%. Bucco cautioned against prolonging the surtax, emphasizing the need for Governor Murphy to honor his commitment to allow it to sunset.

New Jersey's unfavorable business tax environment was underscored by the Tax Foundation's 2024 State Business Tax Climate Index, which ranked the state as the worst for businesses. The report cited high corporate income taxes, individual income taxes, and property tax burdens as contributing factors to New Jersey's low ranking. In contrast, neighboring states such as Delaware and Pennsylvania were ranked significantly higher.

Bucco concluded by asserting that allowing the CBT surtax to expire is a crucial first step in improving New Jersey's tax climate. He acknowledged that further efforts are necessary to enhance the state's appeal to businesses and increase its competitiveness relative to neighboring states.