New Jersey’s 11.5% Corporate Tax Triggers Mass Corporate Exodus: Over $730M in Revenue Flees State
the staff of the ridgewood blog
Trenton NJ, A damning new report from an independent state research group has laid bare a worsening economic crisis in New Jersey, detailing a massive loss of corporate revenue and thousands of jobs as major brands flee to more business-friendly states.
The report, titled “Missed Opportunities,” was recently published by Focus NJ, a nonpartisan, nonprofit research organization. The study outlines the catastrophic fallout from New Jersey’s current 11.5% effective corporate business tax rate—the highest in the United States.
According to state lawmakers, the state’s current tax architecture is actively driving out foundational industries and expanding the economies of competing states.
The 8 Major Corporations Scaling Back in New Jersey
The Focus NJ report highlights eight massive, household-name corporations that have recently downsized or entirely vacated their New Jersey footprints:
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Bristol Myers Squibb
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Johnson & Johnson
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Honeywell International
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Verizon
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Samsung
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Walmart
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Hertz Global Holdings
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Eos Energy Enterprise
Together, the departure or downsizing of these eight entities drained $730.7 million in cumulative revenue from the state economy and eliminated 7,220 local jobs. The primary beneficiaries of these jobs and corporate investments were low-tax states including Texas, Florida, North Carolina, and Pennsylvania.
JetBlue and ExxonMobil Join the Exodus
The multi-million dollar losses detailed in the report don’t capture the full scope of the ongoing shift. In mid-June, aviation giant JetBlue announced it would be closing both its inflight base and technical operations hub at Newark Liberty International Airport, opting to expand its corporate presence in Florida instead.
“You know who loves New Jersey’s economic policies?” asked Assemblyman Christopher P. DePhillips (R-Bergen). “Texas. We have warned of this for years. It’s not a mystery. It’s basic economics. Businesses ask why they should pay 11.5% in addition to all the other ways New Jersey is unaffordable.”
Alarm Bells Sounded by the NJBIA
The findings are heavily supported by data from the New Jersey Business & Industry Association (NJBIA). A recent survey conducted by the organization revealed troubling outlooks from local employers:
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59% of NJ businesses surveyed state they have zero plans to expand within the Garden State.
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More than double the number of employers reported they would rather expand operations in a competing state.
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87% of employers state that business affordability has worsened over the past five years, ranking New Jersey as the worst state in the region for fees and taxes.
Beyond immediate corporate departures, Focus NJ warns that this migration poses a severe, systemic threat to New Jersey’s long-term fiscal stability. As commercial tax bases shrink, local school districts and critical infrastructure budgets are expected to feel immediate budgetary strain.
GOP Pushes for Emergency Hearings and Tax Cuts
In response to the mounting losses, Assemblyman DePhillips and Assembly Republican Budget Officer Brian Rumpf are demanding a special hearing of the Assembly Budget Committee. They intend to bring in executives from the departed companies to testify directly on why they left.
DePhillips is also aggressively pushing for the immediate passage of two economic rescue bills he has sponsored:
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Assembly Bill A2654: A plan to incrementally slash the corporate business tax rate down to a competitive 2.5%.
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Assembly Bill A2702: A bill designed to lower the state sales tax to 6% to stimulate local consumer spending.
“You can’t tax and borrow your way to prosperity,” DePhillips concluded. “Until the state offers a competitive economic environment, in-state businesses will continue to flee, and potential businesses will set up shop elsewhere.”
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