Today, Trenton-based think tank New Jersey Policy Perspective released a new analysis conducted by REMI on the impact that its tax and revenue proposals would have on the state’s economy. NJPP’s proposals would raise more than approximately $2.4 billion, and the analysis shows that investing those funds evenly between general state services and public education would result in an estimated 35,500 new jobs, $2.9 billion increase in state economic output, and $2.4 billion increase in personal incomes for New Jerseyans.
“Deep tax cuts for the wealthy and large corporations as an economic strategy has crippled New Jersey’s ability to grow,” said Sheila Reynertson, Senior Policy Analyst at New Jersey Policy Perspective. “Investing new revenue in public services, on the other hand, helps build a strong state economy. And this model clearly demonstrates what that would look like – more jobs, more economic output and more money in the pockets of New Jerseyans.”
In State Treasurer Muoio’s testimony to the Senate Budget and Appropriations Committee last week, she asserted that even if the budget were to include no new revenues and no new spending, New Jersey would still have a deficit for fiscal year 2019. For a state that is having trouble affording its current obligations, let alone, investing in its critical assets and resources, the failure to raise new revenue would have a disastrous impact on our economy and harm workers and families everywhere.
“When policymakers fail to make the necessary investments in critical areas like transportation, education and affordable homes, we all lose out,” said Gordon MacInnes, President of New Jersey Policy Perspective. “It’s high time that we stop balancing the state budget on the backs of hard working low- and middle-income families and make the bold call for increased revenues to build New Jersey’s economic future by having wealthy households and corporations pay their fair share.”