Report to Members: New Beginnings and the Work Ahead

By Michele N. Siekerka, NJBIA President and CEO On Dec 30, 2024

We usher in 2025 with a new US President and Congress taking office later this month, and before the year ends, New Jersey will be electing a new Governor and General Assembly.

Clearly, 2025 will be a year of political transition and, as with all new beginnings, this also presents new opportunities. The challenge will be to rise above the divisive political polarization that marked the 2024 elections so we can move forward on the work ahead.

From Washington, the business community generally expects to see more favorable federal tax policies to stimulate investment under a second Trump administration, as well as a scaled-back regulatory environment. The president-elect’s pledge to raise import tariffs may impact manufacturers and supply chains, and his promised crackdown on illegal immigration could potentially impact legal immigration and affect employers.

In New Jersey, we can count on themes that resonated most with voters in November 2024 – the economy and “affordability” issue – to remain center stage in our 2025 gubernatorial and Assembly elections. 

New Jersey’s reputation as an expensive state to live and do business in is undisputed. Our image was further tarnished last year when Gov. Phil Murphy, who cannot run for a third term due to constitutional term limits, raised the top corporate tax rate to 11.5% – the highest in the nation, ostensibly to fund NJ TRANSIT.

In the months ahead, businesses will be looking at candidates’ positions on regulatory and tax issues, and they want a commitment that the 2.5% transit surtax levied on top of the 9% Corporation Business Tax will be used for its intended purpose and stay on track to sunset as scheduled on Dec. 31, 2028.

As you may recall, NJBIA launched a “Do Better for Business” campaign in 2024 to bring more visibility to the impact of the governor’s $1 billion tax hike, as well as other anti-business policies proposed by lawmakers. Although Governor Murphy won’t be on the ballot again in 2025, many of the same legislators who embraced anti-businesses policies will be running for re-election this year, and some may even face June primary challenges.

The political tumult of an election year is beyond our control, so here at NJBIA, we will continue to focus in 2025 on the work that must be done to improve New Jersey’s business climate. This includes regulatory relief, tax reform, and workforce development initiatives that grow our economy and make New Jersey a more affordable place to live, work and raise our families. Let’s get to work!

To access more business news, visit NJB News Now.

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