Scroll Top

Raise the business tax and use the money for NJ Transit, Senate president says

Sam Marcus & Brent Johnson | February 22, 2020 | NJ Advance Media |

 

State Senate President Stephen Sweeney on Friday proposed using a 1 percent tax on corporate income in New Jersey to provide a permanent source of funding for NJ Transit, the state’s beleaguered rail and bus system.

The tax would guarantee NJ Transit $250 million to $300 million a year in state tax support, an amount equal to about 10 percent of its total operating budget. The tax hike is part of a proposal Sweeney offered Friday to find the transit system a stable source of income.

“Transit needs every dollar it can get,” Sweeney, D-Gloucester, said during a news conference at the Statehouse in Trenton. “It the lifeblood of the economy of this state.”

The Senate president wants to ask voters in November to require the state send $500 million, including these corporate tax dollars, to NJ Transit by amending the state Constitution — something that would prevent future legislatures from shifting funds to other areas during tough budget times.

Read the full article here