Democrats’ Higher Taxes on Business Threaten Job Security for Thousands of New Jersey Working Families

New Jersey’s economy continues to struggle as compared to our neighbors, and South Jersey continues to trail behind the state as a whole.  Unfortunately, the Trenton Democrats’ recent push for higher taxes on businesses and individuals will only make things worse. 
While Governor Christie vetoed the tax hikes, the message has already been sent by the Democrats who control the legislature: New Jersey’s hostility towards job creation and entrepreneurs will continue for as long as they are in charge. 
New Jersey Democrats in the state Legislature are obsessed with taxing business and jobs out of the state. Our business tax climate, according to the non-partisan Tax Foundation, is ranked dead last in the nation. The critical corporate business tax ranks 41 out of 50, making the new 15 percent surcharge on business the Democrats proposed this year seem all the more ridiculous. I voted against the CBT surcharge tax.  We need to stop raising taxes on businesses.
New Jersey’s slower recovery can be attributed to a long history of oppressive tax policies passed by the Trenton Democrats, including a higher income tax, business tax and sales tax. Along with their $435 million business surcharge, this year the Dems passed a $700 million income tax increase. 
Fortunately for working families, I have proposed legislation that would help entice businesses to relocate here and keep residents from moving out of the state. A-157 would deliver real relief to working and middle class families, responsibly stimulating New Jersey’s economy while improving the state’s tax climate. Bills (A-3110, A-3111 and A-3386) would provide various incentives, including tax credits and exemptions that will help lower costs for companies, making our area attractive to businesses. To match job seekers with employer demands, I also co-sponsored a package of vocational-technical career development program bills (A-3334, A-3335, A-3337 and A-3338) that were signed into law by the governor in December.
A Boston College study found that between the Democrat-controlled years of 2004 through 2008, New Jersey experienced a total decline in wealth of more than $160 million.
In recent years, the cumulative impact of New Jersey’s business taxes has triggered the exodus of major corporations and employers including Mercedes Benz, the Hertz Corporation, Ocean Spray and Estee Lauder. Mercedes was lured by Georgia’s eighth-lowest corporate tax rate in the nation. Hertz moved to Florida, where the corporate tax is barely half the New Jersey rate.
New Jersey economy competes in a global marketplace. The tax structure of a state impacts a company’s cost of doing business. Increasing taxes does nothing to attract companies to operate in New Jersey. The reality is that when costs increase, a business examines its entire operation for opportunities to reduce expenses.
Today, employers give serious consideration to relocating to a more-business friendly state (or country) if it can lower its cost structure. Property, income and sales taxes all impact the success of an operation.
We dodged a bullet this time with the tax increases that were vetoed, but even that isn’t enough. An across-the-board cut to business tax will serve as a catalyst for job growth and economic opportunity for middle-class families.
Assemblyman Sam Fiocchi (R-1st) represents the 1st Legislative District, which covers Cape May, Cumberland and Atlantic counties.