Finding Balanced Solutions

Report to Members

By Michele N. Siekerka, NJBIA President and CEO On Oct 30, 2023

November ushers in the end of the legislative election season, when the rancorous campaign ads (finally) fade to black and the focus returns to the work of governing.

Thanks to redistricting, retirements and maybe some unexpected outcomes at the polls, there will be fresh faces at the Statehouse when members of the 221st Legislature take their oaths in January. NJBIA congratulates all and is ready to work with them on advancing a more competitive business climate that allows companies to grow, create jobs and power our economy.

As New Jersey’s largest and most impactful statewide business association, our members include Fortune 500 companies, manufacturers of all sizes, Main Street businesses, service professionals, workforce development partners and innovative entrepreneurs. Our Government Affairs team has its collective finger on the pulse of the latest developments and unique challenges facing these different businesses and provides the data and research policymakers can rely on as we work together to craft legislative solutions.

We achieved noteworthy successes during the 220th Legislature’s two-year term that ends Jan. 9. There have been significant pro-growth state investments enacted in workforce development, infrastructure and innovation that will help level the playing field for New Jersey businesses.

Changes have been made to the state’s corporate tax structure – specifically with respect to New Jersey’s treatment of global intangible low-taxed income (GILTI) and net operating losses (NOLs) – to ensure corporations (including many manufacturers) located in New Jersey are no longer placed at a disadvantage to competitors operating in neighboring states.

The state budget maintains the Dec. 31 sunset of the 2.5% surcharge placed on the 9% Corporation Business Tax. Progressive groups wanted to derail the scheduled return to a 9% CBT rate, but we cannot allow this state to continue taxing corporations at 11.5% – the highest rate in the nation.

Other challenges remain, and we are committed to working with policymakers to find balanced solutions that will not harm businesses and the employees whose livelihoods depend on them.

Our task is to persuade legislators that new clean energy policies should incentivize consumer behavior, not impose expensive government mandates that remove consumer choice before the science and marketplace can provide affordable options.

Similarly, workplace protections for employees are important, but if new laws and regulations are so financially burdensome that they put their employers out of business, it helps no one. We believe we can work with policymakers to find balanced solutions.

Our common goal is to make New Jersey the best place to live, work and raise a family. We can do it without imposing the nation’s highest business taxes and onerous regulatory burdens that make it unaffordable for people to live and work here. Let’s roll up our sleeves and get to work.

To access more business news, visit NJB News Now.

Related Articles: