NJBIA President & CEO Michele Siekerka, appearing on a recent “Think Tank with Steve Adubato” episode, discussed shifting federal tariff policies and how the $1.2 billion in taxes in the governor's budget plan threaten to worsen New Jersey’s affordability crisis.
The Legislature is currently reviewing Gov. Phil Murphy’s $58.1 billion budget plan for the next fiscal year that begins July 1. The document contains $1.2 billion in new or expanded taxes and fees, such as removing some sales tax exemptions, raising excise taxes on alcohol and cigarettes, legal cannabis, firearms, and raising the Realty Transfer fee.
“The governor now wants to tax so-called participatory sports,” Siekerka said. “That means, that when you take your kids bowling ... or you go out and play golf, these are the things we want to tax?”
The proposed increase in the realty transfer tax to 2% on homes sold for $1 million or more is being incorrectly portrayed as a “mansion tax” on the wealthy when it actually impacts many middle-class seniors selling homes they bought several decades earlier that have greatly increased in value.
“Think about someone who the only asset they have in their portfolio is their residence that they bought when they were a young couple, or a young family,” Siekerka said. “Now they’re ready to retire or go into assisted living. This (home sale) is used to fund the next phase of someone’s life, and we want to go grab that money away from them?”
Regarding the rapidly shifting federal policies on tariffs, Siekerka said the biggest challenge facing New Jersey businesses is uncertainty.
“Businesses can’t make investments if they don’t have predictability and certainty,” Siekerka said. “So, these businesses have frozen their hands on their wallets right now, and we see that as the biggest concern.”
Go here to watch a YouTube video of the interview, which aired on NJBPS and News 12+ over the weekend. The episode will also be broadcast again at 5:30 a.m. Tuesday on NJBPS and Wednesday at 11:30 p.m. on WHYYY.
