Assembly Republican Holly Schepisi, R-Bergen and Passaic, said the budget proposal presented by Democrat leaders calling for a $1.6 billion increase in income and business taxes will be a return to years past. NJ Democrats have proposed a 15 percent corporate business tax surcharge and an increase to a 10.75 percent tax rate on income for individuals and small business owners making over $1 million. 

“The NJ Democrats have reverted to their familiar playbook. They mistakenly think that raising taxes will solve our problems, when experience shows it will have the opposite effect. Businesses are leaving the state, taking good-paying jobs with them, because of high property taxes and income taxes. This proposal will make New Jersey the state with the highest taxes in our region by a wide margin . If this legislation passes, we might as well provide U-Haul moving trucks to every business in our districts as they will migrate to the tax friendly and less expensive states of New York, Delaware and Pennsylvania. All this proposal does is tax people into oblivion.”

Schepisi pointed out how New Jersey ’s tax structure compares to surrounding states and puts it at a regional disadvantage. Without taking the NJ Democrats proposal to further raise taxes into account, tax rates on businesses and corporations in New Jersey are already the highest in the region at 9 percent, compared to 8.7 percent for Delaware and 8.31 percent for New York . Further, New Jersey ’s top marginal personal income tax rate in 2013 is also the highest at 8.97 percent, compared to 3.07% in Pennsylvania , 6.75 percent in Delaware and 8.82 percent in New York .

Notwithstanding the fact that we already have the highest taxes in the region, NJ Democrats have proposed an additional 20 percent hike in the $1 million + income tax as well as a 15 percent corporate business tax surcharge.