After 5 years of cutting taxes for businesses and awarding billions of dollars in tax breaks to a small handful of corporations, the monthly jobs numbers released yesterday are the latest proof that New Jersey needs a new approach to grow the economy and create good jobs.
New Jersey is famous – or perhaps infamous? – for its roads. The Turnpike, the Parkway, the long commutes. But the Garden State is also a public transit state.
New Jersey students and families continue to have a hard time affording the high cost of a college education, thanks to lackluster state support for public colleges and universities.
If lawmakers think it’s tough to deal with the financial hole from past tax breaks now, think about how much worse it’ll be in five or 10 years when the full bills from the state’s recent subsidy surge start to come due.
As New Jersey continues to approve record amounts of tax subsidies to corporations in a failed attempt to jumpstart its stagnant economy, a new study adds to the overwhelming stack of evidence that shows Garden State policymakers are on the wrong track with their focus on these special tax breaks.
Since New Jersey’s “only” handed out $63 million in the past few years, the EDA suggests, all is fine. But New Jersey is indeed on the hook for billions – it’ll just be paid in the coming decade rather than right this minute.
The legislation echoes key NJPP recommendations to help fix a broken test the state uses to determine whether a tax break will result in “net benefits” to the economy and to place a moratorium on new subsidy approvals until statutorily required annual reports are produced by the Treasury.
This week the New Jersey Economic Development Authority launched a new website, and, with it, enhanced its business tax subsidy reporting.
MacInnes told reporter Brenda Flanagan that the state in 2013 made an already risky economic practice even riskier by drastically lowering standards.
To bring a modicum of sanity to these subsidies, New Jersey policymakers should return to the formula that existed prior to 2013’s subsidy revisions.