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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