New Jersey May Adopt Highest Corporate Tax in the Country

No one would consider New Jersey a low-tax state, with the sixth-highest corporate tax rate (9 percent), fifth-highest top income tax rate (8.97 percent), eighth-highest state sales tax (6.625 percent), tenth-highest gasoline tax (37.1 cents per gallon), tenth-highest cigarette tax ($2.70 per pack), and highest property tax ($3,074 average per capita). But officials facing an end-of-month budget deadline are urging tax increases, although they disagree on the type. Gov. Phil Murphy (D) wants to increase in the top income tax rate from 8.97 to 10.75 percent, for income over $1 million. This would apply both to an estimated 20,000 individuals and 5,000 businesses. He has threatened to veto any budget that does not include the tax. Senate President Stephen Sweeney (D) and Assembly Speaker Craig Coughlin (D) instead want a corporate tax rate increase, to 11.5 percent on income over $1 million and 13 percent on income over $25 million. The 13 percent top rate would easily be the…

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