These include the Corporate Transportation Fee (which would hurt big business), the “one truck subsidy” proposal (which would hurt the logistics industry), and cuts to the Economic Development Administration, Business Action Centers, and Small Business Development Centers (which would hurt everyone).
Gov. Phil Murphy's proposed fiscal year 2025 budget contains so many provisions that it has angered the business community, that the New Jersey Chamber of Commerce and the Federation of Chambers of Commerce, a coalition of more than 40 local and regional chambers of commerce across the state, sent a letter to lawmakers Tuesday morning expressing strong opposition.
The coalition represents a significant percentage of the state's employers who believe these measures would damage New Jersey's business climate, undermine the state's hiring and retention efforts, and put good-paying jobs at risk.
Below is an excerpt from the letter.
- Regarding the Corporate Transportation Fee, a 2.5% tax on the state's largest corporations to help support the NJ Transit Agency's operating budget: “Our nation's largest employer and largest not-for-profit charity are being saddled with a completely unjust tax increase that is more punitive to those affected than the recently expired (corporation tax) surcharge. This is simply an even worse, more costly extension of that surcharge.”
- About the Buck-a-Truck Initiative: “The logistics industry, one of the fastest growing sectors of our economy, is being slapped with what can only be described as a nuisance tax that will increase the burden on all New Jerseyans.”
- Regarding cuts to EDA, BAC, and SBDC: “(These) government agencies have served the business community very well, but their funding has been cut. This budget will provide even less support to an already overburdened and over-regulated business community.”
“The biggest threat to the state right now is our economic future. Currently, revenues are declining and expenses are rising. Sure, we've had several increases to our state debt, and we rose to 19th place in CNBC's Best States for Business poll, but none of that was driven by a strong, growing, and vibrant business environment. That was achieved through federal COVID relief funding and bond proceeds,” the group wrote.
The group also presented alternative proposals.
“One need only look at what the bond rating agencies say in all their reports,” the letter states. “In order to continue to sustain New Jersey's economic prosperity, we need to create ongoing, reliable, organic, growth-oriented revenue streams.”
“The only way to do that is through a growing, vibrant and attractive business economy. This budget goes against all of that. It begins to reverse the momentum of our economy. It tarnishes our reputation as a business-friendly state. It erodes business leaders' confidence that the state will not keep its promises. And this budget makes our state more expensive and less competitive.”
The coalition issued the following recommendations:
- Reinvest the $6 billion surplus instead of leaving it idle: This money should be spent before adding new taxes.
- Elimination of corporate travel fees: If we looked closely at every line item in the $56 billion budget, we could easily find $1 billion. An additional tax on corporate profits is not a stable source of revenue.
- Eliminate the truck purchase tax: This represents an additional $10 million in the $56 billion budget. The tax will raise very little money and will stifle economic growth.
- Recover funds: to the Department of Economic Development, Business Action Centers, and Small Business Development Centers;
The letter concludes: “This Budget needs to consider the future of our economy. As currently stated, it lacks that. This is an opportunity that cannot be squandered.”
“This business community has been asking for this for years and we need to start looking at ways to fund it. We need to turn around and start creating a stronger economy. Nothing can grow if you don't feed them. We're not only not feeding our business community, we're starving them.”
“With that in mind, we oppose these measures proposed in the budget and urge you to support measures that will strengthen our business community and ultimately strengthen New Jersey.”
The letter was signed by New Jersey Chamber of Commerce CEO Tom Bracken and New Jersey Chamber of Commerce Vice President of Government Relations Mike Edgenton, and was co-signed by the following organizations:
- New Jersey African American Chamber of Commerce
- Asian Indian Chamber of Commerce
- Burlington County Regional Chamber of Commerce
- Cape May County Chamber of Commerce
- Metropolitan Minority Chamber of Commerce
- Central New Jersey Regional Chamber of Commerce
- Southern New Jersey Chamber of Commerce
- Cliffside Park Chamber of Commerce
- Cranford Area Chamber of Commerce
- Eastern Monmouth Area Chamber of Commerce
- Gateway Area Chamber of Commerce
- Gloucester County Chamber of Commerce
- Greater Atlantic City Chamber of Commerce
- Greater Ocean Township Chamber of Commerce
- Greater Toms River Chamber of Commerce
- Greater Union Township Chamber of Commerce
- Greater Vineland Chamber of Commerce
- Greater Woodbury Chamber of Commerce
- Hohocus Chamber of Commerce
- Hudson County Chamber of Commerce
- Hunterdon County Chamber of Commerce
- Jersey Shore Chamber of Commerce
- Livingston Area Chamber of Commerce
- Mawa Regional Chamber of Commerce
- Matawan Aberdeen Chamber of Commerce
- Meadowlands Chamber of Commerce
- Monmouth Area Chamber of Commerce
- Morris County Chamber of Commerce
- New Jersey Pride Chamber of Commerce
- New Jersey Chamber of Commerce
- New Jersey Veterans Chamber of Commerce
- North New Jersey Chamber of Commerce
- Ocean City Chamber of Commerce
- Princeton-Mercer Area Chamber of Commerce
- Rutherford Chamber of Commerce
- Salem County Chamber of Commerce
- Somerset County Business Partnership
- Suburban Chamber of Commerce
- Sussex County Chamber of Commerce
- Greater Westfield District Chamber of Commerce
- Waldwick Chamber of Commerce
