Top New Jersey lawmaker proposes raising business tax rates

Make text smaller Make text larger

— New Jersey businesses earning more than $1 million would see their corporate tax rates go up, with proceeds going toward school funding under a proposal Senate President Steve Sweeney unveiled Tuesday

Sweeney, a Democrat, said the measure would allow New Jersey to capture funding that businesses are expecting to receive thanks to the federal tax overhaul, which lowered corporate rates from 35 percent to 21 percent.

The move is expected to bring in $657 million in new revenue for New Jersey, Sweeney said. He wants to use the money to help fund schools, with some of the new revenue going toward special education and pre-school.

"We're not increasing their costs,'' Sweeney said. "This is a windfall. We're asking for a portion of the windfall to help taxpayers.

The proposed change would effectively raise the rate from 9 percent to 12 percent for companies with income over $1 million. The proposal would not apply to small businesses or partnerships owned by individuals and families, Sweeney said.

The $657 million expected from Sweeney's proposal is slightly higher than an estimated $600 million expected from a tax hike on millionaires that Democratic Gov. Phil Murphy favors.

Murphy said doesn't see Sweeney's idea as a replacement for the tax millionaire tax. But he sounded open to considering it.

"I don't see it as an alternative, perhaps as an additional weapon at our disposal,'' he said.

Republicans panned the idea.

Senate Republican Leader Tom Kean Jr. said the proposal demonizes employers and chases jobs from the state.

The state Chamber of Commerce and New Jersey Business and Industry Association said in a joint statement they're concerned the change would make New Jersey less competitive compared to Pennsylvania.

Make text smaller Make text larger


Pool Rules


(No heading)
NEWTON — Jean-Luc Ponty, is a pioneer and undisputed master of violin in the arena of jazz and rock. He is widely regarded as an innovator who has applied his unique...
Read more »

Breathe new life into your home with these simple updates
After a long winter cooped up indoors, spring is the perfect time to start re-imagining your home and making upgrades that create a fresh, welcoming vibe. These project ideas...
Read more »

Joseph Carlsen
Joseph Carlsen, 96, passed away in Oneida, Tenn., on March 16, 2018. Born in Burlington, Vt., to Thomas and Elizabeth Carlson, Joe grew up in the Lake Hartung section of Jefferson...
Read more »

Home and Garden 2018
Read what's inside:

• Which home updates will pay off when it's time to sell?

Read more »


Subscribe to our mailing list

* indicates required
Community Newspapers


Letters to the Editor
Thank you, first responders
  • Mar 21, 2018
Local News
One Lucky Leprechaun
  • Mar 21, 2018


Weather in Lafayette, NJ