Proposed N.J. budget seeks billions in tax relief, higher tax on big corporations

The proposed corporate transfer fee did not impress Republican leaders. Assembly Budget Officer Nancy Muñoz described it as “rebranding” the corporate tax surcharge that expired at the end of 2023.

“We applauded ourselves for eliminating the corporate business tax,” she said. “Now, we’ve reinstated the corporate business tax, and what is driving the businesses out of New Jersey is this corporate business tax.”

Muñoz added that there is enough money in the budget to fund NJ Transit, suggesting that the $1.5 billion in legislative add-ons to the current budget could’ve gone toward the transit agency.

Murphy’s spending plan also includes expanded funding for health care for children, investments in pre-k and public schools, a school lunch program and more money for a nursing expansion initiative. Also included in the budget is money for a program to help aspiring teachers, build offshore wind farms, expand the state’s electric grid infrastructure and promote innovation in artificial intelligence.

“We have crafted this year’s budget, letter by letter, line by line to support the working families who have led New Jersey through hard times,” Murphy said, “Our promise has always been putting the needs of our families ahead of special interests.”

The governor also proposed creating a new program called RetireReady NJ, which will provide nearly all workers, particularly those who do not have a pension or 401(k), an option to invest in a retirement savings plan.

Among other proposed spending is a full payment to the state’s pension system and expanded health insurance options, medical debt relief assistance and more money for affordable housing.

“Together we’re going to continue building that stronger and fairer New Jersey where every family, especially those who worry that they’ve been forgotten, has a fair shot at a brighter future,” he said.