Top NJ Lawmaker Proposes Raising Business Tax Rates

New Jersey Senate President Steve Sweeney, D-West Deptford, N.J. (AP Photo/Mel Evans)

A top New Jersey lawmaker says he wants to raise the state’s corporate business tax in response to the federal tax overhaul.

Senate President Steve Sweeney said at a news conference his plan would impose “surcharge” on businesses making over $1 million.

The change would effectively raise the rate from 9 percent to 12 percent for those companies.

He’s calling for using the proceeds for education spending.

Sweeney, a Democrat, says corporations got a “windfall” from the federal tax overhaul and his idea “recaptures” some of that.

Sweeney says the proposal could bring in roughly $657 million. That’s higher than an estimated $600 million expected from a tax hike on millionaires that Democratic Gov. Phil Murphy favors.

Murphy said he doesn’t see the new proposal as an alternative.