NJ Governor Pitches Higher Tax on Businesses to Help Transit

  • Surcharge would apply to businesses with net income over $10m
  • State’s transit system is facing $107 million budget deficit
New Jersey Transit trains at Hoboken Terminal in Hoboken, New Jersey.Photographer: Michael Nagle/Bloomberg
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New Jersey Governor Phil Murphy is proposing a tax hike on the state’s biggest businesses to support its struggling public transportation system, a move that would make its corporate levy the highest such rate in the country.

Murphy unveiled the so-called “Corporate Transit Fee” on Tuesday as part of his $55.9 billion budget proposal for the upcoming fiscal year that begins July 1. The charge will apply to corporations with net incomes greater than $10 million, according to the governor’s office. His office estimates a budget surplus of $6.1 billion.