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.”
“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.”
http://nj1015.com/murphys-1-5b-tax-hikes-so-long-to-jobs-rich-taxpayers-group-says/
http://nj1015.com/murphys-1-5b-tax-hikes-so-long-to-jobs-rich-taxpayers-group-says/
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