A warning from Bill Spadea: Governor Murphy is pushing a new tax on YOU

Only in Jersey, right? First Governor Murphy favored the sunsetting of a 2.5% corporate business tax which at least put New Jersey in a more competitive position when it comes to attracting businesses or better stated, keeping more business from leaving.

As we've discussed for many years, the overbearing taxes in New Jersey keep us as the top "outmigration" state in the country, with 7 in 10 moves being out of state. That plus the billions of dollars in adjusted gross income heading to lower tax states, NJ tax revenue has a short and long-term problem.

Instead of understanding basic economics and fiscal policy which has shown that lowering taxes stimulates growth and actually INCREASES revenue, policymakers in Trenton continue to push for more taxes on families and businesses.

The challenge is that the Trenton politicians look at a budget crisis like NJ Transit without exploring efficiencies, cuts, streamlining, monetizing assets, etc., and just scramble to fund them without an audit or even asking basic questions.

The bureaucrats and backroom politicians have decided that NJ Transit NEEDS another BILLION dollars from YOU. So, Governor Murphy has proposed another $1 billion tax on New Jersey’s largest employers. Perhaps they think by going after bigger companies, the working and middle-class taxpayers won't notice.

This new tax will give New Jersey the largest business tax in the nation, by far. It will make New Jersey less competitive with other states and give our biggest job creators an invitation to move, grow, or invest elsewhere. And that $1 billion tax increase will be passed down to residents, ratepayers, and consumers making everything in New Jersey more expensive.

By contrast, NJ's high corporate taxes are TWICE as high as our neighbors across the river in PA who just moved to cut their tax to just under 5%. New Jersey needs to be recruiting employers. Big companies and small alike.

We should be cutting operating budgets, streamlining, and investing in infrastructure with the increased revenue from new and expanding businesses. Higher taxes will have the opposite impact. Revenues will eventually go down, the cost of living will go up, and more people will be counting the days until they can leave the Garden State.

Tell your local lawmaker to reject Governor Murphy’s proposal. Go to njbia.org/DoBetterForBusiness to say no to a $1 billion tax increase on New Jersey businesses.

Brought to you by New Jersey Business & Industry Association (NJBIA).