taxes

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?

 

'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.