The New Jersey Business and Industry Association warns that a couple proposed tax increases would prompt more companies and residents to leave the state.
Internal Revenue Service data show New Jersey saw a loss of adjusted gross income of $24.9 billion from 2004-2016 due to residents leaving the state.
Meantime, some proposed legislation would increase the corporate business tax on businesses netting $1 million or more per year to 12 percent from 9 percent. That would make New Jersey tied with Iowa for the highest business tax rate in the U.S. NJBIA, using 2015 data, determined that 2,373 New Jersey companies would will be impacted by the proposed tax increase.
Another proposal – chiefly pushed by Gov. Phil Murphy – would raise taxes on individuals with $1 million or more in annual income, a so-called millionaire’s tax.
“Higher taxes, on top of the cumulative costs from our recent and increasing business mandates, are only giving our business owners and residents more reason to leave our great state,” NJBIA CEO Michele Siekerka said at a Thursday press event. “And if they aren’t leaving, they’re certainly not planning to grow here.”
Added Siekerka: “Millionaires have grown around the nation during a time of economic upswing, but New Jersey’s percent change of growth is slower than most of our regional competitors. We should be wary of our tax policies making New Jersey more dependent on the highest income earners who are being given more reasons to consider leaving the state.”