NJBIA and the New Jersey State Chamber of Commerce recently convened their Joint Taxation & Economic Development Policy Committee to discuss pressing issues impacting New Jersey’s economy and broader national policies under President Donald Trump.
U.S. Chamber of Commerce Vice President John G. Murphy spoke about Trump’s proposed tariffs, and their possible economic impact on New Jersey businesses.
Murphy said the tariffs could induce a 1% decline in the GDP and could become a burden impacting American consumers. He noted previously implemented tariffs have been harmful to job creation and manufacturing investment. Murphy concluded by discussing the potential implications of U.S. tariffs internationally, including the possibility of other nations imposing retaliatory tariffs.
Lenore Heavey, senior tax counsel for the Council on State Taxation (COST), discussed tax policies under Trump, focusing on the expiration at the end of 2025 of many of the provisions of the Tax Cuts and Jobs Act (TCJA) and the implications for small businesses and the national deficit.
Heavey also discussed the State and Local Tax (SALT) cap that limits how much taxpayers may deduct taxes they’ve paid to state and local governments on their federal income taxes. The SALT limitation is set to expire at the end of 2025 and whatever deal does emerge will like involve trade-offs to avoid worsening the national deficit.
Senator Andrew Zwicker (D-16) shared his perspective as a member of the state Senate Budget & Appropriations Committee, and the need for innovation-driven economic growth and long-term solutions to address the state’s financial challenges in the FY26 state budget, which begins July 1.
Zwicker emphasized the state’s constitutional requirement to have a balanced budget. He discussed long-term solutions to cost-of-living challenges and stressed the importance of innovation while noting his work at the Princeton Plasma Physics Laboratory.
Zwicker advocated for AI development studies, computer chip manufacturing and innovation, and federal energy grid investments. To conclude his time with the group, he spoke about the need for the gubernatorial candidates to advocate for a Department of Commerce to be re-established as a cabinet level agency.
NJBIA Chief Government Affairs Officer Christopher Emigholz provided a legislative update, including a recap of the business issues within Gov. Phil Murphy’s State of the State address, and previewed next month’s state budget address. Emigholz said he expects it to reveal that New Jersey’s structural budget deficit has worsened.
Amirah Hussain, director of Government Relations for the State Chamber of Commerce, also shared legislative updates on bills affecting tax credit and local programs.
The next Joint NJBIA/Chamber Policy Committee on Taxation & Economic Development is scheduled for April 29.
