Is New Jersey’s 11.5% Corporate Tax Killing Jobs? Lawmakers Demand Repeal of ‘Transit Fee’
the staff of the Ridgewood blog
Trenton NJ, the Fight to Save New Jersey’s Economy.As New Jersey’s unemployment rate climbs to 5.4%—the second-highest in the nation—Assemblymen Christopher DePhillips (R-Bergen) and Brian Rumpf (R-Ocean) are issuing an urgent ultimatum to Governor Mikie Sherrill: Eliminate the Corporate Transit Fee now or risk a permanent “business exodus.”
The lawmakers are championing Legislation A2703, a bill designed to immediately repeal the 2.5% surtax currently weighing down approximately 600 of New Jersey’s largest employers.
The 11.5% Problem: A National Outlier
Currently, New Jersey holds the unenviable title of the highest corporate tax rate in the United States. By combining the standard 9% corporate business tax with the 2.5% transit surtax, the total burden hits 11.5%.
The competitive “Drain”:
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Pennsylvania’s Strategy: While NJ stays at 11.5%, neighboring Pennsylvania has slashed its rate to 8.99% as of 2026, with a roadmap to hit 4.99% by 2031.
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Job Stagnation: In 2025, New Jersey saw a net gain of only 9,000 workers—a statistical “paltry” 0.00095% of residents.
“Every dollar we tax out of a business is a dollar that isn’t going into a paycheck, an expansion, or a job,” warns GOP Budget Officer Brian Rumpf.
Audit Before You Tax: The NJ Transit Controversy
A core pillar of the DePhillips-Rumpf proposal is a demand for accountability at NJ Transit. Instead of taxing businesses to fill budget holes, the lawmakers are calling for a top-to-bottom structural audit of the agency.
The “Double Hit” on New Jerseyans:
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For Businesses: The 2.5% Corporate Transit Fee.
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For Commuters: Automatic annual 3% fare increases (which began July 2025), stacked on top of the massive 15% hike from 2024.
“NJ Transit does not need more money extracted from businesses or riders,” says Assemblyman DePhillips. “What the agency needs is accountability.”
What Happens Next?
The push for A2703 seeks to send an “unambiguous signal” that New Jersey is open for business. If the repeal fails, lawmakers warn that cost-cutting measures—including layoffs and price hikes for consumers—will be the only way for local businesses to survive the 11.5% tax climate.
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