This month’s elections underscored that economic concerns are a top priority for voters. As we move forward, it’s critical for policymakers – at both the state and federal levels – to prioritize initiatives that foster economic growth and stability.
The Murphy administration took an important step on the economy by issuing the recently announced executive order creating a state Economic Council – a concept the New Jersey Chamber of Commerce has long championed. The Council, composed of state government leaders and members of the business community, will focus on a critical goal: finding actionable ways to make New Jersey a more attractive place to do business.
We view the executive order on the Economic Council as a first step that we hope transcends administrations and includes legislative leaders from both sides of the aisle. Regular and sustained dialogue between the business community and government is essential to solving our economic challenges.
The New Jersey State Chamber of Commerce is eager to contribute to this effort, representing the interests of our member companies. Additionally, we will urge all of New Jersey’s gubernatorial candidates – both Democrats and Republicans – to commit to continuing the Council’s work in future administrations.
The timing of this announcement came just as the Tax Foundation released its annual report, ranking New Jersey 49th out of 50 states in tax competitiveness. Simply put, New Jersey’s tax structure is among the least favorable in the nation, second only to New York.
The Tax Foundation’s findings were stark:
- New Jersey endures some of the highest property tax burdens in the country;
- It has the nation’s highest corporate income tax rate, and one of the highest individual income tax rates;
- The state imposes an inheritance tax, aggressively taxes international income, and maintains some of the most poorly structured individual income tax systems in the country.
Against this backdrop, it was surprising last week to see a progressive group in New Jersey proposing further tax increases to address the state’s structural deficits. Their recommendations include new business taxes, new tax brackets for high earners, an expanded sales tax, and a revived estate tax.
We find these proposals deeply troubling. Raising taxes will almost certainly stifle job creation, drive businesses away, and further shrink our economy. The progressive group’s proposal to raise taxes in this environment is from their tired playbook that just does not work. Worse, it ignores the wishes of voters who indicated in this month’s elections and polls, that they want leaders, on the local and federal levels, to improve the economy, not raise taxes.
Instead of debating tax hikes, let’s shift the conversation to strategies that attract and retain businesses, create jobs, and make New Jersey a better place to live and work. We hope the Economic Council tackles this aggressively. With thoughtful policies and strong partnerships, we can ensure New Jersey’s economy begins a path to reach its full potential.
Tom Bracken is president and CEO of the New Jersey Chamber of Commerce, based in Trenton.
