Press Release, Testimony

Experts Agree Corporate Subsidies Are Ineffective, Costly, and Unsustainable

Experts call on New Jersey to rein in and reform its tax credit programs.

By

Published on Sep 5, 2019 in Tax and Budget

Tim Bartik of the Upjohn Institute testifying at the Senate Select Committee on Economic Growth Strategies on Thursday, September 5, 2019 (Screenshot courtesy of NJTV News)

Earlier today the Senate Select Committee on Economic Growth Strategies heard testimony from national experts on economic development best practices and potential reforms to New Jersey’s corporate subsidy programs. In response to today’s hearing, New Jersey Policy Perspective (NJPP) releases the following statement. 

BRANDON McKOY, PRESIDENT, NEW JERSEY POLICY PERSPECTIVE: 

“Today’s testimony confirms what NJPP and critics of the state’s corporate subsidy programs have been saying for years: New Jersey must rein in and reform its tax credit programs with hard caps and stronger oversight. The testimony from national experts also calls into question the overall merit of corporate subsidies, as these tax credits are not nearly as beneficial to the state’s economy as many have claimed. 

“Continuing to provide tax incentives to already profitable corporations is a wasteful pursuit that damages the state’s finances and fails to benefit the public good. New Jersey would be far better served by investing in its workforce and crumbling public assets.

“This is a watershed moment in the ongoing debate over the future of New Jersey’s corporate subsidy programs, as national experts agree that the status quo is ineffective, costly, and unsustainable. Today’s hearing provides lawmakers with a strong framework to reform the state’s approach to economic development. They owe it to taxpayers to get it right.”

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Author

  • Brandon McKoy, President, is the chief executive of NJPP and leads the organization's efforts in shaping policy debates to advance economic justice for the many, not a chosen few. Prior to being named President of NJPP in February 2019, Brandon served as NJPP's Director of Government and Public Affairs, where he designed and implemented the organization's outreach, advocacy, and government relations activities. He also produces timely, credible and accessible research and analysis on issues including, but not limited to, economic security, the social safety net and economic opportunity.

    Brandon’s research interests include: state tax policy, the minimum wage, paid sick leave, the earned income tax credit, urban planning and criminal justice.

    Before joining NJPP in August 2014 as a national fellow under the State Priorities Partnership’s and Center on Budget and Policy Priorities’ state policy fellowship program, Brandon worked as a Program Associate at The Fund for New Jersey, where he assisted in grantmaking on public policy issues that particularly affect low-income and minority populations in New Jersey. He also worked as an AmeriCorps VISTA at HANDS, Inc., a community development corporation in New Jersey, where he worked to mitigate the negative impact of foreclosures and increase citizen participation in local decision-making.

    Brandon formerly served as the Deputy Chapter Director of New Leaders Council – New Jersey and is an alumnus of the 2013 fellows class. He currently serves on the board of the New Jersey Work Environment Council, Shelterforce and the I Am Trenton Community Foundation. He received a MA in City & Regional Planning and Policy Development from Rutgers University’s Edward J. Bloustein School of Planning and Public Policy and holds a BS degree in Social Psychology from The College of New Jersey.

    Email: mckoy (at) njpp.org | Phone: 609-393-1145 ext. 14


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