file photo by Boyd Loving
the staff of the Ridgewood blog
Ridgewood NJ, According to Internal Revenue Service (IRS) data released last week, New Jersey experienced an outflow of nearly $3.2 billion in Individual Income Tax Return Adjusted Gross Income (AGI) for tax year 2017-2018.
Yet, Governor Phil Murphy remains committed to a millionaire’s tax. With Lieutenant Governor Sheila Oliver standing behind him, the Governor cited the tax as beneficial to prepare for a “rainy day.”
With this added net loss of AGI, New Jersey’s total net loss is $28.1 billion over a 13-year period, dating back to 2004-2005.
“This continuing outflow of income tax returns speaks to our declining competitiveness in the region and the nation,” said NJBIA President and CEO Michele Siekerka. “We need to improve our state’s economy through comprehensive planning and reform, rather than excessive taxation, which serves as the trigger for people to want to leave our great state.”
In 2017-2018, New Jersey recorded an inflow of $8.3 billion in income tax returns, compared to $11.5 billion in income tax return outflow.
Data shows that New Jersey’s regional competitors – New York, Pennsylvania, Maryland, Massachusetts, Delaware and Connecticut – received 41% of New Jersey’s outmigrated AGI in 2017-2018.
NJBIA has historically tracked this data and will have further updates on the latest IRS findings in the coming weeks.