High taxes affecting NJ’s business climate, says expert
For years, lawmakers have been discussing and working on improving the business climate in New Jersey, but has it really made much of a difference?
Chris Cordaro, the chief investment officer at RegentAtlantic Capital in Morristown, doesn't think so. "Too many businesses are relocating out of the state because taxation remains a huge issue."
One example of this is the departure of Sealed Air Corp., a bubble wrap company in Elmwood Park. The company, which employs about 1,000 people in New Jersey, is moving to Charlotte, North Carolina. According to the company, the average salary of the employees being relocated is $120,000 a year.
"If we're losing wealthy New Jerseyans, they're the people that have the capital to start businesses," Cordaro said. "If they're moving to other states, they're going to start businesses in other states. They're going to be employing people in other states."
Cordaro said when these high-income earners leave the state, it has a huge impact on New Jersey's economy. "Those people aren't going out to dinner in New Jersey. It puts a big hole in our local economy."
A RegentAtlantic paper published in January, looked at the impact New Jersey's taxation may have on the migration of high income earners from the state. Cordaro said the paper pointed out how over-taxed New Jersey is and how unfriendly the state is to businesses. "I think those are two things that I don't have the answer for, but I certainly see it happening every day with our clients."
The bottom line, according to Cordaro, is people can enjoy a better quality of life in other states because their taxes are lower than in New Jersey.