In a survey, the majority of CPAs in the state said New Jersey’s $34.7 billion fiscal 2019 budget, signed on July 1 by Gov. Phil Murphy, will have a negative impact on the economy.
In a poll of 921 members of New Jersey Society of CPAs, 75 percent said the economy will get either “significantly” or “marginally” worse as the result of the budget. At the heart of the concern is 2.5 percent corporate business tax on companies with annual net income of $1 million or more, and the tax hike to 10.75 percent from 8.97 percent on individuals with $5 million or more in annual income.
The CPAs, in their responses, said that the tax hikes will result in wealthy individuals fleeing the state.
One respondent wrote, “The outward migration of wealth will continue, and the long-term effect will be disastrous.”
Respondents also said the tax increases on corporations will discourage companies from hiring and make the state less friendly to investors and businesses.
Ten percent of respondents who said the new budget will make the state’s economy “marginally” or “significantly” better noted that the state’s sales tax would not be hiked and that the budget carves out additional funding for education and transportation.