Budget battle: State chamber suggests cap on dividend tax

By Anjalee Khemlani
Trenton | Jun 28, 2018 at 10:39 am

Not only are legislators and the governor showing signs of coming together on the state budget, but the business community, which is still opposing all taxes, is starting to budge.

If the state can’t do away with the corporate business tax, the business community is recommending a cap on the amount of dividends that can be taxed — at $5 million per legal entity, according to a statement Thursday morning by the New Jersey Chamber of Commerce.

“Facing this reality, tax experts from member companies of the state chamber have been working with government leaders to minimize the proposed CBT increase. This increase is a complex proposal with some very damaging consequences to New Jersey’s economy and to the state’s largest employers headquartered here or with a large presence here,” according to the statement.

Gov. Phil Murphy has said he is against the high tax rate the Legislature is proposing, at 13 percent for companies with revenues more than $25 million in the state, and the Legislature remains opposed to the governor’s millionaire’s tax.

There are no voting sessions scheduled for Thursday in Trenton.

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Anjalee Khemlani | akhemlani@roi-nj.com | AnjKhem