DePhillips pushes plan to cut corporate tax rate to 2.5%

The exodus of New Jersey residents to other states can be reduced if the state cuts its corporation tax rate, Assemblyman Christopher DePhillips (R-Wyckoff) said today.

“The best way to stem outbound migration is to promote a vibrant economy with permanent tax cuts, not more government spending and gimmicks,” DePhillips said.

DePhillips is the sponsor of a proposal to gradually decrease the corporate business tax from 7% to 2.5% over the next four years, a move that would make New Jersey and North Carolina the same.

“I do not think it is just a coincidence that North Carolina has the lowest-in-the nation corporate tax rate and is also among the top states to gain the most number of new residents,” said DePhillips. “It is imperative that we cut our corporate business tax and not simply let the surcharge statutorily sunset.”

There is no indication that Assembly Democrats plan to give DePhillips’ proposal an up or down vote.  He offered the same bill in the last legislative session, but it never made it out of committee.

“New Jersey’s outmigration of residents is the fourth highest in the nation. These numbers confirm the state is completely unaffordable,” said DePhillips.  “The extra revenue from high taxes is clearly not worth the fallout.”