Trenton (June 12, 2014) – A proposal to raise New Jersey’s income tax higher
than all but three other states would solidify its position at the bottom of
the rankings for business and economic growth, said the National Federation of Independent Business (NFIB) today.
“Every time there’s
a budget problem some lawmakers react by seeking to take even more money away
from the people who invest and create jobs in New Jersey,” said NFIB State Director Laurie Ehlbeck. “This idea hasn’t gotten any better with age.”
Governor Christie
and lawmakers are struggling to fill a big budget hole, caused mainly by a drop
off in income tax revenue. The Governor
has so far promised to solve the problem with spending cuts instead of tax increases. But yesterday State Senator Ray Lesniak
proposed to raise income taxes to a whopping 10.75 percent for people making
$300,000 or more.
“Many of those
people are small business owners who report their income as individual filers,”
said Ehlbeck. “So this isn’t really a
millionaires’ tax. It’s a small business
tax. And there’s no better way to chase
business investors out of New Jersey than to make it harder for them to recoup
their investments.”
Ehlbeck cited US
Census Data gathered by the nonprofit Tax Foundation showing that for more than
a decade New Jersey has been among the biggest losers in the very active
migration of income taxpayers from high-tax states to low-tax states. More than $24 billion in adjustable gross income has flowed out of New
Jersey and is now circulating in the
economies of Florida, Pennsylvania and other places where people can keep more
of the money they earn.
“The millionaires
tax is really a short-sighted solution that ultimately makes our revenue
problems worse,” said Ehlbeck. “We
should be moving in exactly the opposite direction. We should be competing to be among the best
places for people to start a business and make money. They’ll create more jobs and more
opportunities for more New Jerseyans.
“The best way to
solve the state’s short-term spending problem is for the politicians in Trenton
to stop spending so much.”
For more
information about NFIB, please visit www.nfib.com.
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