GSI's Egea: Taxpayers Will Cut-up the Government's "No Limit" Credit Cards When They Move to Other States

GSI's Egea: Taxpayers Will Cut-up the Government's "No Limit" Credit Cards When They Move to Other States

“Taxpayers and job creators are once again being treated like a no-limit credit card which they will cut-up when they flee to other states.

The immediate consequences are apparent. The worst business climate in the nation continues a downward spiral. With higher business taxes we have created more incentives for job creators to relocate out of state.

The exodus of taxpayers, especially those who comprise the majority of the 1% who contribute the 40% of our total income taxes collected, will continue unabated and intensify.”

GSI President Egea: Dem Plan to Increase Taxes Will Make NJ Anti-Business (Op-ed)

GSI President Egea: Dem Plan to Increase Taxes Will Make NJ Anti-Business (Op-ed)

In an op-ed published on NJ.com and in the Newark Star-Ledger on June 17th, GSI President Regina Egea tackles the proposal offered by Senate President Steve Sweeney to raise New Jersey’s corporate tax to the highest in the nation. Such a move, Ms. Egea argues citing a competitiveness study researched for GSI by EY, would severely hamper the state’s ability to retain and attract businesses.

Business Taxes Matter: What New Jersey Needs to Win

Even if New Jersey dramatically cuts the corporate income tax, it would still have to slice the sales tax to compete effectively with lower-tax states. While New Jersey looks at increasing taxes, its competitor states are looking at how to decrease them as a way to boost business and industry. Increasing taxes will only further the climb required to grow the economy.

Those are some of the findings from the new report released by the Garden State Initiative. The report details New Jersey’s business competitiveness compared with five states: Connecticut, New York, Pennsylvania, North Carolina and Ohio. The study delves into commercial and manufacturing industries that face off against each other across state lines.

Click here to download a PDF of the full report.

Thanks for joining us at the GSI Economic Policy Forum

Thanks for joining us at the GSI Economic Policy Forum

Economists, tax experts, and legislators engaged in a spirited debate about what it will take to spur growth in New Jersey at GSI's Economic Policy Forum on May 2. The event focused on original research done for GSI by tax analysts at EY.

Thank you to our panelists:

Dr. Arthur B. Laffer, Dr. James W. Wetlzer, James Freeman, Tom Byne, State Senator Steve Oroho, Assemblyman Louis Greenwald, Daniel J. Geltrude, CPA, and our moderator, Deborah Kostroun.

Read the report here.

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.