(Center Square) – New Jersey should use its tax surplus to reduce the tax burden on businesses and individuals, according to two organizations that help New Jersey grow its economy.
Lawmakers expect her department to be $9 billion more than initial estimates last summer and about $13 billion more than its pre-pandemic peak in 2019, according to New Jersey Treasury Secretary Elizabeth Muoio. I learned that
“The number one priority for saving New Jersey’s economy is to reduce the tax burden on both residents and businesses, as other states have been doing since last year,” said Regina M. Egea of Garden State Initiatives. The president told Center Square. “New Jersey had negative GDP growth in the first quarter.
The New Jersey Business and Industry Association called for a balanced and responsible approach to using surplus in a statement on its website.
“First and foremost, states need to address affordability while also getting the financial boat right,” Christopher Emiholz, NJBIA’s vice president for government affairs, told Center Square.
Egea said keeping a 10% annual budget surplus is best practice, up to $5 billion. The remaining surplus will be allocated to his IT investments to reduce the ongoing costs of providing government services, pass on all government cost savings to lower property tax bills, and contribute to the Unemployment Insurance Fund. We need to replenish the surplus to finance higher taxes on small businesses. .
NJBIA is proposing building a surplus to prepare for a potential recession and fiscal cliff after federal funding runs out. Mr Emiholz said the NJBIA will add more funds to the Debt Forgiveness and Prevention Fund and the Pension Fund. The association also wants states to stop diverting budgets that take money away from government services such as professional licensing boards.
“Stopping these diversions when we can afford it is through professional licensing boards, training funds, 911 funds, local government aid, and clean energy funds,” he said.
NJBIA is also emphasizing the abolition of the corporate business tax surcharge due next year. Emiholtz said New Jersey could take financially responsible steps to allow sunset to happen sooner rather than delaying it again. And any affordable initiative that arises for surplus should include business.
GSI’s Egea said a viable move to re-stage the personal income tax rate, reduce New Jersey’s corporate tax rate, one of the highest in the country, and suspend escalating unemployment insurance taxes on businesses. Proposals are available. These ideas will make the state more attractive and competitive, she said.
“Unfortunately, this administration has shown no willingness to make the nation more competitive by lowering the ongoing costs of government,” she said.
According to Emiholz, NJBIA’s growth-enhancing investment proposal is a win-win way to spend money on people and businesses. These include workforce development, especially in the midst of workforce crises, infrastructure and innovation.
Along with GSI’s proposal to maintain a reasonable $5 billion surplus and reduce tax rates across the board, Egea said the New Jersey government needs to modernize to meet the state’s needs in the 21st century. said.
“Basic government functions, as evidenced by the painful failure of unemployment benefits, motor vehicle services, the performance of veterans’ nursing homes, prison administration especially for women, and the loss of education, especially in the worst performing districts, , is not available in our state.” she said.