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Corporate business tax 'cleanup' bill passes Legislature.

Byline: Daniel J. Munoz

The measure, Senate Bill 2989/Assembly Bill 4495, is designed to address technicalities in the legislation that call for a four-year increase to the corporate business tax that Gov. Phil Murphy signed in July. Opponents argued the measure was rushed.

S2989 would handle how to tax certain types of income overseas, and how much of that is realized in New Jersey and subject to the corporate business tax. Since the Trump administration's tax cuts, many states have been trying to figure out how to tax those assets to stay competitive with other states. Senate President Stephen Sweeney, D-3rd District, said he believes the tax rate should be at 50 percent.

Tom Bracken, president of the New Jersey Chamber of Commerce, said the 50 percent tax rate is too high, adding the proposed rate came out of left field.

"We were under the impression that this wasn't going to happen anywhere near this 50 percent level," Bracken said. "It's totally opposed to what we were told the cleanup bill would be like, it's worse than the original bill. We were told it would clean up the original bill and make it more compatible. It isn't."

Any company that makes over $1 million a year would be subject to an additional corporate tax of 2.5 percent for two years, then 1.5 percent for another two years, making it the second-highest corporate tax rate in the nation.View the full article from NJBIZ at Copyright 2018 BridgeTower Media. All Rights Reserved.

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Author:Munoz, Daniel J.
Publication:NJ Biz
Article Type:Brief article
Geographic Code:1U2NJ
Date:Sep 28, 2018
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