While Governor Christie and the Democrats argued about whether the state could afford an estimated $215 million income tax cut or credit for residents, they approved without debate a set of business-tax-relief proposals that will cost the state significantly more.
The Record notes that the cuts were locked in through legislation passed last year — a fact that made adoption of the cuts pretty much a foregone conclusion.
“This year, I think the economic climate did change,” NJPP president Gordon MacInnes says. “But the fact they were fixed in legislation, coupled with the history of bipartisan support for business cuts and credits, mean they remained.”
Still, MacInnes warns that the state may be putting too great an emphasis on tax cuts – whether they are corporate or individual.
“If you wanted to say, ‘what works?,’ you would not advance the argument of tax cuts,” he says. “That’s because there’s no evidence that tax cuts are the primary drivers for businesses when they are considering whether to relocate.”
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