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.
“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.
“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?
“New Jersey still desperately needs structural reforms that comprehensively addresses underfunded pensions and right-sizing of health benefit costs. We must remember the proposed overall budget is increased by 3.2 percent from the current fiscal year and 11.2 percent from FY 2018. It is important that the state focuses on fiscal responsibility rather than additional spending.”