Michele Siekerka
Statement on Gov. Phil Murphy’s proposed budget by Michele Siekerka, president and CEO of the New Jersey Business & Industry Association
“Positioning New Jersey for the 21st century through improved education and better interaction between businesses and government to ensure a quality workforce, as well as commitments to better infrastructure and public transportation, are all good things for our state.
“But the pathway to that vision must be fiscally responsible and should not negatively impact New Jersey’s businesses and residents. Some of the revenue raisers in Governor Murphy’s address today gave us pause.
“A millionaires tax directly impacts small businesses that flow their income taxes through personal returns. Many of these business owners are not millionaires, but would be considered so under his proposal. We have long opposed the millionaires tax because it is an added tax against people who provide jobs and will exacerbate our standing as the No. 1 outmigration state in the nation.
“New Jersey now has a net loss of nearly $25 billion in adjusted gross income over the last 12 years as businesses and residents gravitate to states that are more tax-friendly, such as Pennsylvania and New York, our top two outmigration states. We would expect the enactment of a millionaires tax to further this negative trend.
“Additionally, today’s budget address was not the only sign of increased costs to New Jersey businesses. There are already multiple legislative efforts to add more to the already high cost of doing business here – including an increase in corporate business taxes, a mandated increase to a $15 minimum wage, mandated paid sick leave, a bill to subsidize the state’s nuclear plants and renewable energy programs, and a return to the Regional Greenhouse Gas Initiative program.
“To date, there has been no recognition by our policymakers of the cumulative impacts of these proposed costs to businesses, nor has there been any acknowledgment that these added costs will ultimately be handed down to the customers, ratepayers and residents of New Jersey.
“We were encouraged by last month’s announcements of a State Tax Policy Review Working Group as well as the Jobs and Economic Growth Council. Because New Jersey is at a critical juncture, with many businesses and residents unable to afford to live and work here, NJBIA supports allowing the work of these groups to advance comprehensive recommendations through a thorough process of stakeholder engagement and vetting.
“It is only through a fair process that we can truly achieve a fair result. We look forward to working with the governor and our policymakers on making a more competitive and affordable New Jersey.”
It’s a breath of fresh air that for once you’re willing to side with the taxpayers.
Agreed. History has shown a preference at NJBIA to large corporations like Penn East and the Pipeline.
So, take a state with one of the highest overall tax burdens and announce lots of tax increases ?! That great sucking sound is the sound of the upper middle class and wealthier residents fleeing south. Looks like Phil is creating an East Coast version of California….. a paradise for the poor and downtrodden. And that is just what he will get for constituents. And their numbers will insure an ever growing majority in the democratic electorate. This agenda is about maintaining political power. And Phil knows the cynical and addictive appeal of free program money! My lease in Hamilton, is up in about 2 1/2 yrs. I plan on buying a building for my business at that point. But it will be in Pennsylvania. I predict a trend in the making. I also predict a larger EXIT / Hostage tax in the offing.
We, in the business community, saw this coming when Murphy decided to run and eventually win. ALL he is going to do, is help middle and upper class people with the ability to leave the state, MOVE OUT. Eventually, you will have the state employees subsidizing a greater share of their own benefits through this type of governing, one way or the other. It will leave the citizens that can not afford to move or don’t really care to carry the rest of the burden.
There are many ways to attack the stat’s problems. Raising taxes is not the answer.
I hope that NJBIA follows through on their willingness to help middle-classed, tax payers and small businesses. Consideration to raise costs in NJ in any way must be a non-partisan issue and only be done if it is in the best interests of our residents and businesses. How about a tax or wage increase freeze? That is what should have been done Mr. Murphy! I will not retire here due to the direction this state is going, which is “down hill.”
Last one out, be sure to turn out the nuclear-subsidized lights!