Murphy’s $1.5B Tax Hikes: So Long to Jobs, Rich Taxpayers, Group Says
With Gov. Phil Murphy continuing to push for $1.5 billion in new taxes, a new analysis finds raising those taxes would make Jersey’s budget woes worse.
New Jersey must have a balanced budget in place by June 30 or the state will shut down.
Michele Siekerka, president and CEO of the New Jersey Business and Industry Association, said outmigration has been a growing concern in the Garden State but new data shows “New Jersey’s net loss of adjusted gross income is nearly $25 billion over the last 12 years.’
She noted the net loss for tax year 2015-16 was $3.5 billion, considerably higher than the annual rate of loss of $2.1 billion over the past 12 years, an indicator “our situation isn’t getting better, but potentially getting worse.”
She pointed out if New Jersey’s corporate business tax is raised from 9 to 12 percent as proposed for companies with a net income of more than $1 million, Jersey would tie Iowa for having the highest CBT rate in the nation, and 2,400 companies that generate billions of dollars in revenue would be affected.
“We’re concerned about that becoming an issue for outmigration, or lack of job growth,” said Siekerka, whose industry group is often critical of tax hikes and other regulations that impose costs on businesses.
“If the corporate business tax is raised we can bet that CBT surcharge will only incentivize our larger corporations to consider expanding outside the state of New Jersey.”
The analysis shows a higher tax on millionaires would be harmful because “our rate of growth of millionaires is slower than others in the region."
Siekerka pointed out if millionaires pack up and leave, that means companies may close, putting the people working in those companies out of a job, or working in another state.
She said any time we talk about raising taxes in the state of New Jersey, “it causes businesses to freeze their hands on their wallets, step back from the planning and investment they were thinking about and to think about other options, and those options include not growing in the state or leaving the state.”