NFIB will continue to lobby and support for relief from the Unemployment Insurance Trust Fund tax increase, the sunset of the corporate business tax surcharge, and indexing state income tax rates to brackets.
A-3683 would provide businesses with relief from the $1 billion payroll tax increase to replenish the Unemployment Insurance Trust Fund that has stalled in the Senate. The bill was pulled from the Senate board list last June at the request of the Murphy administration because the Governor stated he would not sign it. The increase or hike in the unemployment payment that all businesses will pay will start in July 2023. The goal is to include relief as part of the next budget, and the legislature has agreed to revisit the issue.
Second, NFIB also wants the Legislature to allow the 2.5 point surcharge, which was added to New Jersey’s already steep 9% Corporate Business Tax (CBT) rate in 2018, to sunset as scheduled by law on January 1, 2024. The 11.5% CBT rate was supposed to be temporary and has already been extended once before by the Legislature. It is the highest in the country.
Last, NFIB also will actively engage in advancing S-676, which calls for indexing individual state income tax rates to brackets that adjust for inflation, as the federal government did long ago. This would help small businesses that pay their taxes as pass-through entities on the owner’s individual income tax.
To support these efforts, it is crucial to respond to “action alerts” when received as your grass roots participation in contacting legislators is crucial to achieving lobbying success.
