GSI’s Egea: Governor’s Budget Insufficient to Improve Business Climate, Won’t Reduce Property Taxes

MORRISTOWN, NJ – Garden State Initiative’s president, Regina M. Egea, issued the following
statement on Governor Phil Murphy’s Budget Address:

The Governor’s budget offers insufficient improvement to our business climate and will not
reduce residents’ property taxes.

The proposal to expire a 6-year business tax surcharge is a tacit admission that business taxes
are an important factor in retaining and luring investment in our state. But returning to our
statutory 9% tax rate is simply not enough since we will still be the 4th highest in the U.S. and
highest in the region. Even our neighbors in Pennsylvania are lowering their rate to be among
the 10 lowest in the country. If our state is to truly compete, more dramatic action is required
from our leaders.

Just yesterday it was reported that New Jersey’s property taxes reached another record high
reflecting the largest average rate increase in years. By allowing the 2% arbitration cap to
expire and failing to control public employee health care costs, this administration is exploiting
our residents, not serving public needs. Rather than address the true driver of our
unaffordable property taxes, this budget seeks to once again paper over the unabated and
accelerating growth in spending with a temporary and targeted rebate program.
Taxpayers should rightfully be demanding bolder and more candid leadership.