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Garden State Initiative
Arthur Laffer and Regina Egea tell Gov. Murphy ...

Gov. Phil Murphy in his recent budget address touted Massachusetts as the iconic role model for New Jersey’s economic aspirations. We wonder if, by singling out Massachusetts, Murphy was proposing halving New Jersey’s highest marginal personal income tax from its current almost 10 percent rate (fifth-highest in the nation) to Massachusetts’ 5 percent rate. Or, maybe he was suggesting New Jersey cut its current highest corporate income tax rate from 9 percent to 8 percent. Or did he mean we should emulate Massachusetts’s flat tax?

 

Arthur Laffer and Regina Egea tell Gov. Murphy he's going to have to cut taxes if he wants to emulate Massachusetts
Garden State Initiative
Connecticut’s Fiscal Crisis Is a Cautionary ...

Connecticut provides a cautionary tale for the next governor of New Jersey, according to a report from the newly launched Garden State Initiative. With its “severe pension underfunding, a high tax burden and politically powerful government unions,” New Jersey is facing challenges that have already placed it near the bottom of national rankings of fiscal health, according to the author of the report, Stephen D. Eide of the Manhattan Institute. One of the only states to fare worse in recent years has been Connecticut, which mirrors New Jersey in many ways.  

Tax policy is one of the major themes of the campaign for governor of New Jersey. Since the Great Recession, the Garden State has cut some taxes and avoided raising income taxes, which has helped its recovery. Connecticut, however, boosted already-high taxes, counted on economic growth that didn’t materialize and now faces the repercussions, according to the 16-page report, “Connecticut’s Fiscal Crisis is a Cautionary Tale for New Jersey.”

Click here to download the PDF of the full report.

Connecticut’s Fiscal Crisis Is a Cautionary Tale for New Jersey - A New Report by GSI

Join us at the GSI Economic Policy Forum on May 2 in New Brunswick

Join us at the GSI Economic Policy Forum on May 2 in New Brunswick

What: 

Economists, tax experts, business leaders and legislators will discuss what it will take to spur growth in New Jersey at GSI's Economic Policy Forum. This policy event is focused on original research done for GSI by tax analysts at EY.

Who:

  • STEPHEN MOORE, the Distinguished Visiting Fellow, Project for Economic Growth, at The Heritage Foundation. He formerly wrote on the economy and public policy for The Wall Street Journal. 
  • JAMES W. WETZLER, a former Director at Deloitte Tax LLP in New York City. He served as the Chief Economist to the Joint Committee on Taxation in Washington D.C., and has been New York’s Commissioner of Taxation and Finance.
  • DEBORAH KOSTROUN, a former Wall Street reporter for Bloomberg Television, will moderate the forum.

When:

Wed., May 2, from 8:45 a.m. to 12 noon.

Where: 

Hyatt Regency, 2 Albany St., New Brunswick

RSVP:

Contact Maureen Sullivan at msullivan@gardenstateinitiative.org

Arthur Laffer and Regina Egea tell Gov. Murphy he's going to have to cut taxes if he wants to emulate Massachusetts

Arthur Laffer and Regina Egea tell Gov. Murphy he's going to have to cut taxes if he wants to emulate Massachusetts

Gov. Phil Murphy in his recent budget address touted Massachusetts as the iconic role model for New Jersey’s economic aspirations. We wonder if, by singling out Massachusetts, Murphy was proposing halving New Jersey’s highest marginal personal income tax from its current almost 10 percent rate (fifth-highest in the nation) to Massachusetts’ 5 percent rate. Or, maybe he was suggesting New Jersey cut its current highest corporate income tax rate from 9 percent to 8 percent. Or did he mean we should emulate Massachusetts’s flat tax?

 

A Hike in the Corporate Tax Would Only Hurt NJ's Competitiveness

A Hike in the Corporate Tax Would Only Hurt NJ's Competitiveness

State Senate President Steve Sweeney's proposal to put a 3-percentage-point surcharge on corporate taxes means N.J. would be tied with Iowa for the highest state rate in the nation. Sweeney sees raising the corporate tax rate from 9% to 12% as a way to avoid implementing the "millionaire's tax," which was a cornerstone of Gov. Phil Murphy's campaign. Murphy has said he would consider the hike in the corporate tax in addition to the "millionaire's tax" and not just as an alternative.

Gov. Murphy Creates A Jobs Council Without Any Representation From The Private Sector

Gov. Murphy Creates A Jobs Council Without Any Representation From The Private Sector

Let’s applaud Gov. Phil Murphy for putting job creation on his agenda. The governor signed an executive order establishing a Jobs and Economic Opportunity Council to provide advice and recommendations “for stimulating job growth and workforce development.”  It’s hard not to notice, though, the lack of any individuals from the private sector on the council.

'You can’t tax your way to prosperity,' writes GSI in The Wall Street Journal

'You can’t tax your way to prosperity,' writes GSI in The Wall Street Journal

No matter what this year’s gubernatorial candidates may say, painless solutions to New Jersey’s fiscal challenges don’t exist. The state’s budget may be balanced on a “cash” basis, but a massive structural deficit lurks beneath. New Jersey’s property taxes, already the highest in the nation, are being driven up further by the state’s pension burden and escalating health-care costs for government workers. A useful comparison is Connecticut, which has tried unsuccessfully to tax its way out of a similar set of problems. 

Connecticut’s Fiscal Crisis Is a Cautionary Tale for New Jersey - A New Report by GSI

Connecticut’s Fiscal Crisis Is a Cautionary Tale for New Jersey - A New Report by GSI

Connecticut provides a cautionary tale for the next governor of New Jersey, according to a report from the newly launched Garden State Initiative. With its “severe pension underfunding, a high tax burden and politically powerful government unions,” New Jersey is facing challenges that have already placed it near the bottom of national rankings of fiscal health, according to the author of the report, Stephen D. Eide of the Manhattan Institute. One of the only states to fare worse in recent years has been Connecticut, which mirrors New Jersey in many ways.  

Tax policy is one of the major themes of the campaign for governor of New Jersey. Since the Great Recession, the Garden State has cut some taxes and avoided raising income taxes, which has helped its recovery. Connecticut, however, boosted already-high taxes, counted on economic growth that didn’t materialize and now faces the repercussions, according to the 16-page report, “Connecticut’s Fiscal Crisis is a Cautionary Tale for New Jersey.”

Click here to download the PDF of the full report.

A Fiscal Crisis in New Jersey

A Fiscal Crisis in New Jersey

New Jersey has a serious fiscal crisis on its hands, a crisis with two interrelated culprits: 1) painfully high taxes driven by 2) unsustainable public spending which includes out of control pensions reflected in unfunded liabilities. Our collective inaction is driving both residents and businesses to flee elsewhere. Even while the tax burden grows, essential services are increasingly being crowded out due to rising costs associated with the state’s public workforce.

The costs to New Jersey’s citizens and businesses are increasing by the year. They feel frustrated, marginalized, and powerless. With New Jersey’s tax climate for business ranked 49th by the Tax Foundation, and a ranking of 48th by Forbes magazine when examining the best and worst state tax burdens, it is no wonder that according to recent Gallup and Monmouth polls nearly 50 percent of New Jersey’s residents want to leave the state.