New Jersey’s new governor, Phil Murphy, supports several new tax bills, including one that would require affiliated businesses to file a combined report if at least one of those businesses has a “nexus” with New Jersey – that is, a connection to the state such as a physical location there or employees who regularly try to sell goods or services there.
Gov. Murphy believes that this “unitary combined reporting” – which, unlike the current law, requires each business that has a nexus with New Jersey to file its own separate corporation business tax return – would prevent multistate corporations from shifting profits from New Jersey to lower-taxed states, thereby raising $290 million in new revenue.
Gov. Murphy also supports what is known as a millionaire’s tax proposal. It would temporarily increase the tax rate on taxable income that exceeds $1 million.
Each of these proposals has its share of critics. Find out why not everyone agrees with the bills Gov. Murphy is backing.
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