NJBIA Statement on State Revenue Announcements
New Jersey Business & Industry Association President and CEO Michele N.Siekerka, Esq. today issued the following statement on state revenue announcements by the state Office of Legislative Services and Treasury.
“The state tax collections announced today are encouraging, but not necessarily surprising considering the strength of the national economy, coupled with a Corporate Business Tax rate increase last year that is now second highest in the nation and is bringing in record receipts for the state.
Continue reading “The question needs to be asked: If we’re continuing to overtax our residents and businesses during an economic upswing, what will happen during an eventual economic downturn?
“What is surprising, in light of this windfall, is the continued call for even more taxation as part of the FY 2020 budget proposal. Clearly, this additional revenue is more justification to not increase the Gross Income Tax rate on those making over $1 million, as proposed, as it will further hurt our competitiveness in the region.
Murray Sabrin Professor of Finanace at Ramapo College
I sent the following letter to Tom Moran about his column. http://www.nj.com/opinion/index.ssf/2017/11/njs_millionaires_tax_hike_is_losing_support_moran.html
Your editorial today misses several points. If Murphy wants to spend more, then all New Jerseyans should pay higher taxes. Your support of his tax hike on upper income individuals and families is nothing less than “Willie Sutton” economics. In addition, I have been living in a Fort Lee 171 family co-op for ten years, about 25% of the shareholders leave for FL for half the year. They have been FL residents for many years, from what I gather. A higher top marginal rate will really accelerate the exodus.
Murphy’s tax and spending plan will face a fundamental economic reality, government spending does not boost an economy. Less regulations will make New Jersey more attractive to the business community as will lower marginal tax rates.
New Jersey should have one of the best state economies in the nation based on several factors. Instead, both Republicans and Democrats have implemented policies that in the final analysis have driven businesses out of the state in the 40 years I have been living here. In addition, New Jersey is far down on the list of companies that are looking to expand. The laws of economics and principles of finance cannot be overridden by statist politicians. In short, Murphy should check his premises about how an economy works.