Trenton (April 15, 2014) – New Jersey dropped six places in a
national economic ranking mainly because of the minimum wage increase approved
by voters last November and it should be a reminder to lawmakers in Trenton
that the clever politics often has negative results, said the National Federation of Independent Business
(NFIB) today.
“We’re
getting the kind of national attention that we don’t want now,” said NFIB State Director Laurie Ehlbeck. “Business investors around the country pay
attention to these rankings and it affects their perception of the state. Business owner in New Jersey pay attention as
well and it influences their outlook on the state’s economic climate.”
The
American Legislative Exchange Council this morning released its 2014 Rich
States-Poor States Economic Outlook Index, which weighs a number of factors,
including rates, labor laws and regulations.
New Jersey this year dropped from 39th place to 45th.
“We’re
right back at the bottom of the pile,” said Ehlbeck. “We had a big hole to dig out of in the first
place and the minimum wage increase made that hole deeper.”
New
Jersey has one of the highest income taxes in the country to go along with the
highest property taxes. It has a very
aggressive regulatory system and now, because of the November ballot question,
it has the only minimum wage rate in the country that is required by the
Constitution to increase every year automatically.
“For
a lot of small business owners that means they’ll never really be able to keep
up with the increasing cost of labor,” said Ehlbeck. “That’s a very important consideration when
you’re trying to decide whether to hire new employees. The economy won’t improve every year. Other expenses won’t go down every year. But your labor costs will go higher every
year.”
Ehlbeck said
that New Jersey can’t be competitive unless lawmakers commit to removing some
of the impediments to economic growth.
“There’s no
reason for New Jersey to be among the highest taxed states in the country,” she
said. “If we want to have a top-tier
economy then we need a tax structure that rewards hard work and
investment. Obviously, having the
highest taxes in the country isn’t working.”
To learn
more about NFIB please visit www.nfib.com.
