75% of Accountants Say Murphy’s First Budget Could be Disaster
Nearly three quarters of New Jersey certified public accountants surveyed believe the new state budget will harm our economy.
Ralph Albert Thomas, CEO and executive director of The New Jersey Society of Certified Public Accountants, says members believe both the millionaire's tax increase and more corporate taxes will be harmful.
"Roughly 75 percent of those that were surveyed indicated that there would be a negative impact; 39 percent felt the economy would get marginally worse; and 37 percent felt that it would get significantly worse."
The survey had responded from 921 CPAs in the state.
Thomas said New Jersey's high taxes make it an "outlier" among other states in the region.
Gov. Phil Murphy, a Democrat, campaigned as a progressive and believes his first spending plan is fair to the middle class and working class. New Jersey's local property taxes, however, remain among the highest in the nation and is one of the most regressive tax systems.
Rising taxes and fees on the state level, however, also have businesses evaluating their options, Thomas said.
"A number of the clients were coming in and saying, 'Is it time for me to think about relocating out of New Jersey — not only as an individual, but my business?'"
"We cannot tax our way out of this. We have got to grow our way out" and cut spending, he said.
He says only 10 percent of CPAs believe the new state budget will improve things. Those who surveyed in favor of the budget supported Gov. Phil Murphy's decision to keep the sales tax unchanged and provide more transportation funding.