Who thinks Amazon, Wells Fargo, or Bank of America deserve a tax cut? Because that’s exactly what the proposal to end the Corporate Business Tax Surcharge is: a tax cut for the biggest corporations in New Jersey.
New Jersey’s Corporate Business Tax (CBT) Surcharge is a 2.5% tax on every dollar of profits above $1 million and is now set to expire on December 31, 2023. Eliminating the CBT surcharge would cost New Jersey hundreds of millions of dollars while only benefiting the top 2 percent of ultra-wealthy businesses. In 2019, the CBT surcharge was estimated to bring in $664 million in annual revenue and with corporate profits at record highs, it likely brings in much more revenue today.
At Clean Water Action, we recognize that this tax cut will immediately reduce the funding for green acres and blue acres, programs that preserve the limited open space NJ has left as well as the buffer zones that protect neighborhoods from flooding.
But it’s worse than just the immediate and obvious cuts to specific environmental funds. Cutting taxes for giant corporations when there are still so many underfunded and unfunded programs in NJ, says that our state values billionaire profits over public infrastructure, health care, public schools… and our climate future.
For over a decade, the Clean Energy Fund has been raided to support the General Fund. And NJ Transit has not had funding for capital projects. Has that funding been restored yet? No.
NJ has been talking a big clean energy game, but the cuts to the Clean Energy Fund mean that programs to make clean energy accessible to lower income residents are delayed. The cuts to the NJ Transit capital budget mean that mass transit improvements in NJ are delayed or left unconsidered.
Now, the state is saying we can afford to cut the taxes of giant corporations. We are here to say: absolutely not. Not until we repair the damage done by the years of cuts to critical investments in our climate future. New Jersey should continue to invest in its working people and families, instead of bailing out large corporations who make billions in profits.
In advance of Governor Murphy’s budget speech this year, Clean Water Action team up with community partners and allies to highlight the importance of preserving the Corporate Millionaires Tax, read more about it here.
I have 2 small children. I’m here to speak for them and all of their friends: This tax cut is cutting the funding for investments in their future. Please help by clicking to take action sending the Governor, legislative leadership, and your local legislators an email to tell them to make the CBT Surcharge permanent.