NJCPA: 80% of CPAs surveyed say Murphy’s proposed $55.9B budget would leave economy worse

A recent survey of Certified Public Accountans found that nearly 80% percent of the 405 CPAs polled after Gov. Phil Murphy proposed his $55.9 billion budget for Fiscal Year 2025 on Feb. 27 said the budget will leave the state’s economy either marginally worse or significantly worse over the long term, according to a Tuesday announcement from the New Jersey Society of Certified Public Accountants.

Forty-five percent said the economy will get significantly worse and 32% said it would get marginally worse. Only 12% said it would get better.

The budget, which would become effective July 1, included a Corporate Transit Fee, which would levy a tax of 2.5% on businesses that earn more than $10 million in profits as another means of fiscal support to New Jersey Transit.

Additionally, more than 70% of NJCPA survey respondents also said the tax would prompt businesses to leave New Jersey.

Respondents feel the Murphy administration should focus on shrinking government, lowering taxes of individuals and businesses, implementing zero-based budgeting and reforming the state pension system. They added that the cost structure of New Jersey Transit also should be fixed.

“The proposed new Corporate Transit Fee, coming on the heels of the sunsetting of the Corporation Business Tax surcharge, will cause more business executives to reconsider establishing, expanding or keeping their business in the Garden State,” Aiysha “A.J.” Johnson, CEO and executive director at the NJCPA. “In recent NJCPA surveys, more than half of the CPA respondents admitted to advising a New Jersey-based business client to consider relocating outside of New Jersey due to the state’s high cost of doing business.”