Garden State Times

Governor Phil Murphy recently addressed the joint members of the Assembly and Senate in New Jersey, delivering his "State of the State" message. He highlighted that New Jersey now boasts a more reasonable and responsible government, serving as a model for the nation. Governor Murphy noted that since the pandemic began, one billion dollars in grants and loans have been provided to assist small businesses.

Despite these measures, Main Street businesses continue to face challenges in what is described as an expensive and overtaxed state. The National Federation of Independent Business (NFIB) expressed gratitude for the aid but pointed out that businesses are contributing over one billion dollars to replenish the Unemployment Compensation Trust Fund, which was depleted during the pandemic. This approach contrasts with most other states that used federal COVID relief funds to address their unemployment shortfalls.

Governor Murphy also announced plans to overhaul New Jersey's liquor licensing laws. While this initiative aims to improve regulations, it may introduce additional fees and create competition between unlicensed and currently licensed Main Street restaurants.

In a statement following his speech, Governor Murphy confirmed he would allow the corporate business tax (CBT) surcharge to expire at the end of 2023. Currently, there is a 2.5-percent surtax on top of the 9-percent CBT for companies earning more than $1 million in taxable income. New Jersey presently has the highest CBT rate in the United States.