Business Surcharge at Center of Tax Fight

March 20, 2023 | njspotlightnews.org

…(T)he corporation business tax — often referred to in Trenton shorthand as the “CBT” — is projected to generate more than $5 billion during the fiscal year that begins July 1, making it one of the state’s largest single sources of revenue.

But the fate of a special surcharge that accounts for just a slice of the overall tax haul is dominating the tax-policy discussions unfolding around Murphy’s budget plan for the 2024 fiscal year.

NJ SEED: When the Corporate Business Tax (CBT) surcharge was enacted it was with the understanding that it would expire in 2023. The surcharge is levied on businesses with a net income of over one million dollars. With today’s inflated dollars, one million is not a very high threshold. The CBT is estimated to produce $5 billion in the next fiscal year. The surcharge would generate an estimated $322.5 million. To some advocates any tax that does not come from their pockets must never be eliminated. They would continue to choke the “goose that lays the golden egg” not caring that they might kill it.