In a recent interview on Jersey Thing with Eric Scott, NJBIA Chief Government Affairs Officer Christopher Emigholz said New Jersey’s disappointing ranking in the recently released Regional Business Climate Analysis is more impactful because of the similarities some of the states also in the report.
For the eighth straight year, New Jersey ranked lasted in the region in cost competitiveness and business taxes.
The analysis, found here, shows New Jersey remains a regional outlier with the top corporate tax rate (11.5%) and highest property tax paid as a percentage of personal income (4.38%). Additionally, New Jersey finished with the second highest top income tax rate and combined state sales tax rate.
“We often hear, ‘Oh, it’s not fair to compare us to states in the South. It's not fair to compare us to states in the Midwest,’ Emigholz said to Scott.
“The Northeast is a little more expensive. The Mid-Atlantic is a little more expensive. So, you know what? We know that New York is expensive, Maryland's expensive, Massachusetts is expensive.
“But on these six cost drivers (minimum wage, top income tax rate, sales tax rate, corporate tax rate, property taxes, and payroll taxes), when you average them all out, we are the most expensive in the entire region. “More than New York, more than our neighbors in Massachusetts, which have high tax expensive reputations,” Emigholz said.
Emigholz also said that the Regional Business Climate Analysis should be top of mind with lawmakers and Gov. Mikie Sherrill when finalizing the FY27 State Budget between now and end of the month.
“It's important for our policymakers, especially as we go into the month of June where they're making decisions about our state budget, our spending, our taxes, where they know that New Jersey is not ranking in a good place that, that makes us competitive with other states,” Emigholz said.
“We need to focus on affordability. And the only way we can seriously focus on affordability is to make sure that we're not spending more than we need to this year,” he said.
To listen to Emigholz’ full Jersey Thing segment with Eric Scott, click the audio link below.
