Is New Jersey Driving Big Business Away? Why Corporate Tax Cuts Are Now Urgent
the staff of the Ridgewood blog
TRENTON, N.J. — New Jersey is facing a critical economic turning point. Assemblyman Christopher DePhillips (R-Bergen) has issued a stark warning to state leadership, calling for an immediate and drastic reduction in New Jersey’s corporate business tax to halt a growing corporate exodus.
As major employers downsize or flee to business-friendly states, the debate over New Jersey’s affordability is reaching a boiling point.
The Corporate Flight: Why Big Names are Leaving NJ
Over the past several years, New Jersey has seen a noticeable reduction in its corporate footprint. High operating costs, heavy regulations, and an unforgiving tax climate have prompted several iconic brands to relocate or consolidate operations outside the state.
Some of the notable companies reducing their New Jersey presence or moving entirely include:
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Exxon
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Honeywell
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Maserati North America
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Gerber Products Company
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Anheuser-Busch (following the announced closure and sale of its historic Newark brewery)
“New Jersey cannot continue pricing itself out of competitiveness,” DePhillips warned. “When major employers leave, shut down facilities, or reduce their presence, we lose jobs, investment, local tax revenue, and economic opportunity for working families.”
The Competitive Divide: NJ vs. Pro-Growth States
According to DePhillips, the strict regulatory environment and the nation’s highest business tax burden are actively driving companies into the arms of competing states.
Governments in states like North Carolina, Texas, Florida, and Georgia have successfully used lower business taxes and regulatory predictability to lure major employers away from the Garden State. While these states enjoy rising business tax revenues fueled by growth, New Jersey is struggling to retain its revenue base.
The Clash Over Future Tax Policies
The economic divide is further highlighted by a growing political clash over tax policy. DePhillips criticized current proposals from Governor Mikie Sherrill aimed at increasing corporate burdens, arguing they break previous promises of keeping the state affordable.
“Voters were promised affordability and were told there would not be new taxes, yet now businesses are being asked to shoulder even greater burdens,” said DePhillips. “At a time when other states are lowering taxes to attract employers and jobs… Governor Sherrill appears determined to move in the opposite direction.”
The Solution: Phased Reductions and Regulatory Reform
To fix the state’s economic stagnation, DePhillips is championing Assembly Bill A2654, which outlines a clear roadmap to economic recovery:
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A Phased Reduction: Systematically lowering the corporate business tax rate down to 2.5%.
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Regulatory Review: Conducting a comprehensive audit of burdensome regulations that unnecessarily inflate daily operating costs.
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Long-Term Predictability: Providing businesses with a stable tax outlook so they have the confidence to invest, expand, and hire locally.
What This Means for Everyday New Jerseyans
This corporate tax debate isn’t just a boardroom issue—it directly impacts local job seekers and working families.
New Jersey’s job market was nearly stagnant throughout 2025, adding a net total of just 5,100 jobs. Furthermore, data indicates that drops in the local unemployment rate have been largely driven by workers leaving the labor force entirely rather than finding new employment, leaving the state with the nation’s highest rate of continuing unemployment claims.
“Every headquarters that leaves, every plant that closes, and every job that disappears has a ripple effect on families, local businesses, and entire communities,” DePhillips emphasized. “New Jersey should be leading the nation in economic growth and opportunity, not leading the nation in driving employers away.”
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Tags: New Jersey Politics, Corporate Tax, Economic Policy, NJ Jobs, Business News, Tri-State Economy.
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