NJBIA Vice President of Government Affairs Christopher Emigholz today told the Senate Budget and Appropriations Committee of the need for appropriate investments to help boost New Jersey’s economy and structural reforms as part of Gov. Phil Murphy’s $44.8 billion FY22 budget.
While lauding no new tax increases and a full pension payment as part of the budget proposal, Emigholz also warned that New Jersey’s rate of spending is unsustainable, with FY22 appropriations exceeding revenue by $3.9 billion.
Emigholz also recommended a comprehensive and prudent plan for the spending of $6 billion in federal funds.
“A few well-placed investments to stimulate the economy and some fiscal discipline with the coming federal relief can avoid this budget being a one-and-done in terms of being pro-growth and having no new taxes,” Emigholz said.
“A few consecutive budgets with no tax increases will help make New Jersey more affordable and it could begin to stem the steady outmigration of billions of dollars in wealth that New Jersey has seen for decades.”
To go with the pro-growth spending in innovation and infrastructure that is part of the budget, Emigholz recommended more funding for workforce development programs, as well as budget language and/or legislation that would drive significant federal funds to the New Jersey Economic Development Authority for Main Street businesses.
Federal funds directed to the New Jersey Unemployment Insurance (UI) Trust Fund would also reduce debt and a looming $1 billion automatic UI tax increase on jobs, Emigholz said.
Additionally, New Jersey remains an outlier with the highest corporate tax rate in the nation and in our extreme taxation of Global Intangible Low Taxed Income (GILTI) that harms corporations that do business overseas. These two extremes discourage large employers from locating and expanding in New Jersey.
Emigholz also urged structural reforms to maintain some of the new recurring spending programs and pro-growth investments, in order to avoid future tax hikes.
To see Emigholz’s full written testimony, click here.