Reconciliation bill would give New Jersey the highest corporate business tax rate in the industrialized world, industry leaders say
(The Center Square) – The massive reconciliation bill federal lawmakers are pondering would give New Jersey the highest corporate business tax (CBT) rate in the industrialized world, industry leaders say.
The $3.5 trillion bill calls for increasing the corporate income tax from 21% to 26.5%.
In a joint statement, New Jersey Business & Industry Association (NJBIA) President and CEO Michele Siekerka and New Jersey Manufacturing Extension Program (NJMEP) CEO John W. Kennedy noted New Jersey has the highest CBT rate in the nation. The state “would effectively have the largest such rate in the industrialized world should this massive tax increase take effect,” they said.
“Most manufacturers in New Jersey, and in the nation, are not, in fact, major corporations,” Siekerka and Kennedy added. “They are small- and mid-sized firms, which are often registered as corporations. So make no mistake, this enormous rise in corporate business taxes will greatly impact the ability of manufacturers to create and retain jobs.”
The measure will reduce the capital manufacturers use to invest in their companies, ultimately increasing prices for consumers, Siekerka and Kennedy said.
“Our organizations call for New Jersey’s congressional delegation to recognize these impacts, particularly as we celebrate our manufacturers today,”
“We need to continue the progress from the reforms that have helped strengthen the industry in recent years,” they added. “We need our leadership to fight on behalf of New Jersey’s businesses and not allow our state to go from a national outlier to a global outlier when it comes to business taxes.”
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