New Jersey Governor Phil Murphy has signed a new budget that includes a tax increase on companies that make over $10 million. The budget, which was signed on Monday, aims to boost revenue for the state while also providing relief for small businesses and middle-class families.
Under the new budget, companies making over $10 million will see their corporate tax rate increase from 11.5% to 13%. This tax hike is expected to generate an additional $210 million in revenue for the state.
Governor Murphy defended the tax increase, stating that it is necessary in order to address the state’s fiscal challenges and ensure that New Jersey can continue to provide essential services to its residents.
In addition to the corporate tax increase, the budget also includes a number of relief measures for small businesses and middle-class families. This includes a $500 tax rebate for families making less than $150,000 per year, as well as an increase in the Earned Income Tax Credit for low-income workers.
The budget has received mixed reactions from lawmakers and business leaders. Some argue that the tax increase on corporations will hurt the state’s economy and drive businesses away, while others believe that it is a necessary measure to address the state’s budget deficit.
Overall, Governor Murphy’s signing of the budget represents a bold move to generate much-needed revenue for New Jersey while also providing relief for those who need it most. The impact of the tax increase on corporations remains to be seen, but it is clear that the governor is determined to prioritize the needs of the state’s residents in the face of economic challenges.
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