NJPP Statement on Senate Passage of Subsidy Overhaul Bill
The Senate has now concurred to the governor’s conditional veto of the Economic Opportunity Act, all but ensuring that the legislation overhauling New Jersey’s business tax subsidy programs will become law. Below is the statement of NJPP president Gordon MacInnes on the legislation.
“This legislation throws more resources at New Jersey’s subsidy programs, despite the fact that tax subsidies have only marginal effects on location decisions. The lack of a spending cap, in particular, is distressing, as it all but ensures the state will continue the surge in subsidy awards that have marked the past few years, further straining future state budgets of revenues needed to pay for the public goods – like education, safety and transportation – that we all need to thrive. We believe that business tax subsidies should be only a small part of the state’s economic development strategy, not the main tool in the toolbox.”
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