Category: Press Release

For The Many NJ: Budget Deal Includes Too Many Corporate Giveaways

Posted on by NJPP Staff

Advocates, policy experts, and small business owners from For The Many NJ condemned the numerous corporate tax cuts and giveaways in the state budget proposal voted out of committee Wednesday night. The budget was advanced by the Senate and Assembly Budget Committees late in the evening, with zero public comment and text not available for the public to review before the $54.3 billion budget was voted on.

The budget deal includes a $1 billion corporate tax cut, an overhaul of the corporate tax code that makes it easier for companies to hide their profits overseas, and major expansions of tax credits for Hollywood studios and commercial developers that were snuck into the budget in the waning hours of negotiations.

Over the last few months, members of the For the Many NJ have urged lawmakers that everyday New Jerseyans, not big corporations, should be the focus of the budget: testifying at public hearings, meeting with NJ Transit riders, unveiling a scroll representing the ultra wealth of big corporations, and rallying in front of the offices of corporate lobbyists.

In a year with record-breaking tax collections, lawmakers failed to invest these funds in programs that families and small businesses rely one — like NJ Transit, affordable housing, the social safety net, and more — and instead diverted billions of dollars to corporate entities, their shareholders, and high-paid executives.

Antoinette Miles, Interim State Director, New Jersey Working Families Party:
“For months, advocates have urged lawmakers not to dole out billions of dollars in costly corporate tax handouts to companies like Amazon and Walmart. Trickle-down policies don’t work. They limit our ability to make investments that make New Jersey’s economy work for everyone and do nothing to ensure our state can maintain its fiscal footing.”

Nicole Rodriguez, President, New Jersey Policy Perspective (NJPP):
“It’s hard to evaluate this budget when it’s riddled with errors and needs to be corrected. What we do know is that an overall lack of transparency rewarded big corporations and special interests at the expense of everyday New Jerseyans. With record revenues and a chance to make generational investments in the state, lawmakers prioritized a $1 billion corporate tax cut and hundreds of millions of dollars to Hollywood studios and real estate developers. Make no mistake, there are great investments in the budget worth celebrating, but they pale in size and scope to the tax cuts and credits given to the wealthy and well-connected. When corporations and wealthy households are allowed to skirt the tax system and do not pay what they owe, that leaves less funding for our schools, mass transit, and other public goods we all rely on.”

Elizabeth Roque, member of Make the Road – New Jersey:
“The Legislature has given a billion dollar handout to the wealthiest multinational corporations like Amazon, while working families across New Jersey continue to suffer. The failure to extend the Corporate Business Tax Surcharge is a mistake that will have long-lasting, devastating consequences on families like mine who are struggling to make ends meet. A billion dollars would fix NJ Transit, provide a full Child Tax Credit to all kids in New Jersey, and help build more affordable housing. But instead, the Legislature today has chosen to line the pockets of the wealthiest corporations.”

Liz Glynn, Director of Organizing, New Jersey Citizen Action:
“Allowing the Corporate Business Tax Surcharge to expire benefits a handful of wealthy corporations at the expense of the vast majority of New Jerseyans. This could eventually lead to significant cuts in programs involving healthcare, education, the environment, transportation, and many other initiatives that help ensure working families in our state can thrive and prosper. It also puts future state leaders in the impossible dilemma of pitting our state’s financial health against the economic security of countless New Jersey families.”

J. Kelly Conklin, Founding Board Member, New Jersey Main Street Alliance:
“While there are certainly things to like in the budget legislation moving toward the Governor’s desk, the political calculus that includes massive revenue giveaways to a very small number of highly profitable corporations in the form of cutting the corporate tax rate doesn’t add up. Using calculus to disguise bad math never works in the long run. But while big, profitable corporations laugh all the way to their offshore bank accounts it will be small businesses that pick up the revenue shortfalls with tax increases and diminished public investment that impacts them, their customers and their employees.”

Marcia Marley, President, BlueWaveNJ:
“New Jersey’s economy is growing in part because of responsible stewardship from our Governor and the Legislature. That said, we are in danger of repeating our mistakes by creating a budget plan that will not weather the coming fiscal cliff. Instead the Legislature and Governor are making large tax relief plans which may not be sustainable and fail to target those who need it most.”

Amy Goldsmith, New Jersey State Director, Clean Water Action:
“Despite a looming fiscal cliff with federal funds depleting and a troubling economic clouds smoldering, the announced agreed upon budget is a reverse Robin Hood. Taking from the poor to give to the rich is unconscionable. Yet, that’s what’s on the table with fare hikes and service cuts being considered for NJ Transit, underfunding of the Earned Income Tax Credit, and $400 million raids on NJ Transit and the Clean Energy Fund that target the low income while millionaire businesses and McMansion homeowners get billions of dollars in new tax breaks and those with low incomes gets less.”

Dennis Trainor, CWA District 1 Vice President:
“After decades of administration after administration of both political parties failing to make the required full pension payment, we’re thrilled that – for the third time in a row – this budget makes the full pension payment. This will help bring retirement security for hundreds of thousands of current and former state workers. And that’s incredible. What’s not so thrilling is Trenton failing to extend the Corporate Business Tax Surcharge – in effect, incredulously rewarding corporate greed and robbing our state of more than $1 billion of revenue annually at a time when New Jersey continues to struggle funding crucial services like education, transportation and healthcare.”

Cliff Simms, Peter Simms, Dorothea von Moltke, Owners of Labyrinth Books and Great Jones Books:
“As the owners of two New Jersey family businesses, we are tired of hearing how small businesses are the engine of employment and economic growth while watching how large corporations are the beneficiaries of unwarranted tax breaks, which add proportionally little or nothing to the economy of New Jersey. Sunsetting the 2.5% surcharge on corporations that make over one million in net profits will eventually put more of a financial burden on small and medium sized businesses, which are still digging out of from the difficulties of the pandemic and have had to cope with, in its wake, rapidly rising wages as well as heightened inflationary costs. It seems obscene to give a handout to large corporations at a time when businesses on Main Street remain depressed and struggling while trying to do the right thing for employees.”

Rev. Sara Lilja, Director, Lutherans Engaging in Advocacy Ministry NJ (LEAMNJ):
“Does the state budget reflect our values? Tax breaks for wealthy corporations during this time of economic uncertainty is short-sided and immoral. The state budget must prioritize the needs of all; not just wealthy corporations! The economic engine of our state is our people. Hard working neighbors and friends continue to struggle to make ends meet each month, while contributing every day to the state’s economy. We have a moral obligation to plan for the future of families, and help all New Jersyans to thrive. Our state budget must reflect these values!”

Julie Borst, Executive Director, Save Our Schools NJ:
“New Jersey schools have been underfunded for over a decade. While the Murphy administration has made great strides in getting us to full funding, we do not see how it will be possible to maintain without the largest corporations paying their fair share of taxes. These same corporations have benefitted from significant federal tax cuts and they have benefitted from New Jersey’s well-educated population. They should contribute to support the system that produces those people. Without this funding, homeowners can expect to have to make up the difference.”

Philip Hensley, Democracy Policy Analyst, League of Women Voters of New Jersey:
“In the middle of the night, the legislature passed a budget giving away billions to big corporations. And the process was as flawed as the budget itself: no public testimony was allowed, legislators voted without seeing the final text, and because of rushed drafting the budget’s numbers don’t even add up. While this budget does invest in some laudable programs, for example by increasing the Child Tax Credit, this budget misses the opportunity to fund New Jersey’s future. This continues a worrying trend in Trenton of passing damaging legislation in the dark. From laws gutting campaign finance limits, to secretive last-minute amendments, to a budget that nobody saw and an assault on OPRA, New Jersey residents are noticing an anti-transparency streak in Trenton. With this budget, an opaque process has once again produced short-sighted and inadequate legislation.”

# # #

For The Many NJ is a statewide coalition of more than 30 organizations working to expand funding for essential services and improve budget practices to meet current and future needs, especially for communities that have been historically marginalized.

New Jersey Policy Perspective Announces New Vice President and Policy Director

Posted on by NJPP Staff

TRENTON, NJ (June 1, 2023) – New Jersey Policy Perspective (NJPP), a nonpartisan think tank dedicated to advancing economic and racial justice, is pleased to announce the promotion of Louis Di Paolo to Vice President and the addition of Awinna Martinez as the organization’s new Policy Director.

As Vice President, Louis Di Paolo takes on a more formal role in guiding NJPP’s strategic direction and policy agenda in addition to leading the think tank’s communications department. In his previous position as Communications Director, Louie played a critical role in developing messaging and communication strategies to promote NJPP’s research and shape public discourse on pressing policy issues. Louie was a leading figure in the successful campaigns for the $15 minimum wage, millionaires’ tax, and state-level Child Tax Credit.

“Louie has been a tactical force behind some of the biggest policy wins for New Jersey’s working families,” said Nicole Rodriguez, President of NJPP. “He has the rare combo of policy expertise, communications savvy, and commitment to mentorship for both his colleagues and partners across the advocacy and legislative arenas. We’re thrilled to have Louie take on this new role and bring his talents to every aspect of NJPP’s work.”

Louis Di Paolo, Vice President, speaking at NJPP’s Progress 2022 policy conference.

Before joining NJPP in 2018, Louie served as the Legislative Director for the New Jersey Working Families Alliance, and prior to that as a Legislative Aide for State Senator Bob Gordon. He was previously the Deputy Director of New Leaders Council – New Jersey and served as a councilman in his hometown, Dumont, New Jersey, from 2016 to 2019.

“I am honored to take on the role of Vice President at NJPP,” said Louis Di Paolo, Vice President of NJPP. “This is a truly special organization that leverages hard data and facts to make sure policy works for the people and not special interests. I look forward to continuing to work with the talented team at NJPP and our partners in advocacy to advance justice for all who call New Jersey home.”

To head the think tank’s policy department, NJPP is excited to announce the hire of Awinna Martinez as Policy Director. Awinna brings a wealth of experience in policy development and research, with a focus on human-centered approaches to criminal justice reform. As Policy Director, Awinna manages NJPP’s team of analysts and plays a major role in developing and advancing the think tank’s research and policy agenda.

“Awinna is a strategic thinker and is deeply passionate about policies that prioritize the needs of workers and families across the state,” said Nicole Rodriguez. “Awinna’s rich background in direct service, policy implementation, and community building will help inform our work building a more inclusive and equitable future for New Jersey. We are so fortunate to have Awinna head our policy team and take on a leadership role here at NJPP.”

Awinna Martinez, NJPP Policy Director.

Awinna’s extensive background includes working as a Program Manager with the Center for Effective Public Policy and serving as the Project Director of the Staten Island Justice Center, overseeing the implementation of pretrial supervised release under New York City’s bail reform law. Her contributions at the Midtown Community Court, Newark Community Solutions, and the Center for Collaborative Change in Newark have further deepened her understanding of community needs and the impacts of policy change. Awinna is a proud product of New Jersey’s public schools and holds a Bachelor of Arts from Rutgers University, New Brunswick, and a Juris Doctor from Rutgers School of Law – Newark.

“I’m excited to join NJPP and contribute to the vital work of advancing economic and racial justice in my home state,” said Awinna Martinez, Policy Director of NJPP. “With a brilliant team of analysts and deep ties to grassroots and community groups who inform our work, I am confident that together we will continue to drive meaningful change. It’s an honor to join an organization with a record of success in championing policies that center the needs of communities.”

Founded in 1997, NJPP is a “think and do” tank, driving policy change to advance economic, social, and racial justice through evidence-based independent research, analysis, and advocacy.

# # #

Labor Unions, Policy Experts, and Racial Justice Organizations Oppose Corporate Tax Loophole Bill

Posted on by NJPP Staff

On Wednesday, members of For The Many NJ and other supporting groups sent an open letter to members of the Senate and Assembly Budget Committees urging them to amend a proposal (S3737/A5323) that would open major loopholes in the corporate tax code and make it easier for multinational corporations to hide their profits in tax havens overseas.

The letter was signed by labor unions, small businesses, essential workers, faith leaders, and advocates for immigrants’ rights, the environment, affordable housing, and racial justice.

“Corporations doing business in New Jersey should pay their fair share of what they owe to the state to support our communities, schools, infrastructure, and social safety net. Yet corporations are poised to get more opportunities to avoid paying their taxes with this bill, on top of an anticipated $1 billion tax cut at the end of the year,” the letter states.

The letter highlighted two key provisions of the bill that must be removed to avoid opening tax loopholes for multinational corporations to exploit:

  1. Reopening a loophole for phantom interest and royalty payments, allowing corporations to artificially reduce their profits for tax purposes
  2. Reducing the tax rate on foreign income in low-tax nations to merely 5 percent, rather than the 50 percent under current law.

The recommendations in the letter mirror those outlined in an analysis of the bill by New Jersey Policy Perspective (NJPP).

“New Jersey loses roughly $700 million to corporations shifting their profits to foreign low-tax jurisdictions,” the letter continues. “Eroding the corporate tax base to assist the world’s largest corporations in tax avoidance schemes hurts the state and its residents, while handing ever more money to corporate shareholders already experiencing record profits.”

The letter was signed by 27 organizations and labor unions, including: New Jersey Policy Perspective, Make the Road New Jersey, New Jersey Institute for Social Justice, ACLU of New Jersey, Latino Action Network, CWA, New Jersey Education Association, 32BJ SEIU, New Jersey Sustainable Business Council, Main Street Alliance, New Jersey Alliance for Immigrant Justice, and New Jersey Working Families Party.

Read the open letter here.

# # #

For The Many is a statewide coalition of more than 30 organizations working to expand funding for essential services and improve budget practices to meet current and future needs, especially for communities that have been historically left behind.

Workers and Advocates Urge Lawmakers to Stop the Corporate Millionaires Tax Cut

Posted on by NJPP Staff

A day before Governor Murphy delivers his annual budget address, workers, policy experts, and advocates from For The Many NJ gathered outside the State House to urge lawmakers to stop the corporate millionaires’ tax cut and maintain the Corporate Business Tax surcharge in next year’s budget.

Eliminating the 2.5 percent surcharge, paid on every dollar of corporate profit over $1 million, would cost the state at least $650 million in revenue every year. The coalition warned that the tax cut would blow a big hole in the state’s budget and threaten investments in essential public services, programs, and infrastructure that residents and businesses alike rely on.

“Low and moderate-income families are struggling to make ends meet. Sunsetting the corporate business tax and undermining our current and future progress as a state would be a mistake,” said Antoinette Miles, Political Director of New Jersey Working Families and emcee of the press conference. “The only promise our state must fulfill in its budget is the promise of uplifting working families — not the largest multi-million dollar corporations.”

According to a report released last week by New Jersey Policy Perspective, only the top 2 percent of businesses operating in New Jersey pay the surcharge, including multi-national corporations not headquartered in the state like Amazon, Walmart, and Bank of America.

“This is a tax cut for some of the wealthiest corporations on the planet, not ‘Mom and Pop’ businesses,” said Sheila Reynertson, Senior Policy Analyst at New Jersey Policy Perspective. “When big corporations don’t pay what they owe, we all have to make up the difference, either in higher taxes or in cuts to vital public services like schools and transportation. We should know by now that corporate tax cuts never trickle down. This is a bad deal for New Jersey.”

Speakers from the coalition urged lawmakers to pass a budget that would benefit all residents, not just corporate shareholders.

“While working families struggle to pay for rent and food every month, multi-billion dollar corporations like Amazon are reporting record profits,” said Rodney Salas, leader and member of Make the Road NJ. “New Jersey cannot give bad actors like Amazon a tax break. Letting the (CBT) expire would mean that working people would have to subsidize billionaire corporations like Amazon that are making record profits. Working people do not want to subsidize corporations. It is time to invest in housing, schools & working families, not to give tax cuts to billionaire corporations like Amazon in the FY2024 budget.”

“We urge Governor Murphy and the NJ Legislature not to walk away from a successful policy that reversed the state’s fiscal damage and ensured the viability of important investments in low- and moderate-income New Jerseyans,” said Dena Mottola Jaborska, NJ Citizen Action Executive Director. “If our leaders reverse the CBT surcharge while we are simultaneously seeing a deep drop in federal funding, the state’s fiscal health will take a huge hit largely at the expense of our most vulnerable communities. All for a windfall for the state’s wealthiest corporations while jeopardizing funding for a host of programs that millions of residents need to achieve economic security. Progress for these communities requires sustained investment and commitment.”

“Cutting the corporate business tax surcharge is giving money to our wealthiest corporations, those in the top 2% of earnings,” said Francine Pfeffer, Associate Director of Government Relations at NJEA. “That’s $600 million the state doesn’t have to help schools pay for new ventilation systems, student transportation, or other needs.”

“Investments to protect New Jersey’s environment and public health have long been short-changed and allowing the millionaires tax for Corporations to expire on Dec 31st this year will be disastrous. Clean energy programs for the poor and mass transit capital projects are already defunded; climate programs are underfunded and delayed when they need to be expanded to meet the moment; and a cut to the corporate business tax will make matters worse resulting in a direct cut of $48 million to green and blue acres,” said Eric Benson, Clean Water Action, NJ Campaigns Director. “We are running out of time to make a meaningful impact on emissions before the worst impacts of the climate emergency become our NJ children’s future and we can’t afford to let New Jersey’s richest corporations, who have thrived in the last three years, off the hook.”

“Allowing the CBT surcharge to sunset would be yet another giveaway to the wealthiest corporations who already exploit tax avoidance loopholes to maximize short-term profits,” said Richard Lawton, Executive Director of the NJ Sustainable Business Council. “Since 98 percent of New Jersey businesses have revenues that make them exempt from the surcharge, eliminating it would only compound the unfair competitive advantage that large out-of-state companies already have over local businesses who do their part as responsible citizens to make New Jersey a great place to work and live.”

“The Christian church began our 40 day tradition of reflection, confession and renewal this past week on Ash Wednesday. We confessed that we are in bondage to sin and submit too readily to the idols and injustices of economic life. We often rely on wealth and material goods more than God, and close ourselves off from the needs of others. Too uncritically we accept assumptions, policies, and practices that do not serve the good of all,” said Rev. Sara Lilja, Executive Director of Lutherans Engaging in Advocacy Ministry NJ (LEAMNJ). “Today we call on all people of faith to question the decision of the Governor to let the Corporate Business Tax surcharge expire. Cutting the CBT puts vital funding for public services at risk — like investments in public infrastructure, health care, and public schools. Just as the federal government is pulling back on SNAP assistance for hard working families, or TANF benefits to those most in need, we as a state must continue to assist. If the pandemic taught us anything, it is that we rely on “essential workers” for our daily life, we must continue to support all New Jerseyans; and continue to fund programs that support families in the hight cost state.”

Keeping the Corporate Business Tax surcharge in place generates more than $600M per year and at a time when future federal windfalls are in doubt, making this revenue stream permanent is more essential than ever,” said Matthew Hersh, Director of Policy and Advocacy of the Housing and Community Development Network of New Jersey. “Corporate landlords are raising rents at unconscionable rates — between 20 and 40 percent statewide – while benefiting from huge tax breaks. NJ has long been a leader in many sectors, but when it comes to housing the approximately 200,000 neighbors in need of an affordable home, we continue to fall short. Working closely with the Murphy administration and our legislative allies, we have made great strides toward funding and allocating the Affordable Housing Trust Fund, creating the Affordable Housing Production Fund for towns with unmet Fair Share housing obligations, prioritizing first-time and first-generation homeownership and emergency rental assistance. But we cannot take our foot off the pedal now as we HouseNJ: the CBT is a key part of funding these priorities, and we cannot and should not reverse course.”

“It is unconscionable that New Jersey lawmakers would give tax cuts to the state’s largest corporations that make millions of dollars in profits every year instead of investing those funds in transformative policies that would narrow our massive racial wealth gap and create a more equitable New Jersey for everyone,” said Harbani Ahuja, Associate Counsel, Economic Justice, New Jersey Institute for Social Justice. “$600 million could go a long way in funding programs like Baby Bonds, to enable low-income and low-wealth Black and other children of color to build wealth and economic security.”

“Now is the time to address the future of New Jersey’s economy. The Corporate Business Tax has significantly supported investments and policies critical for maintaining the high quality of life New Jersey has to offer,” said Kelly Conklin, President of the Main Street Alliance Board. “As it stands, the CBT is New Jersey’s third largest source of revenue. To sunset the surcharge, of which only 2% of New Jersey businesses are taxed, will not help small businesses. Main Street businesses will have to pick up the revenue tab left by large multinational corporations, adding an undue burden to the struggles small businesses face year over year to make their margins, keep pace with inflation, retain their employees with competitive benefits and manage personal responsibilities. To sunset the CBT is to forfeit $664 million a year and force families in this state to spend an entire second income on child care. To sunset CBT is to give away $664 million to companies recording record profits while simultaneously laying off tens of thousands of employees. Without this funding public infrastructure like our roads, public spaces, schools and more will crumble. Corporations that qualify for the CBT have long avoided paying their fair share of taxes, placing the responsibility on small businesses and other vulnerable communities. Eliminating the Corporate Business Tax surcharge is not in the best interest of small businesses in New Jersey.”

Watch a livestream of the event here.

# # #

For The Many is a statewide coalition of more than 30 organizations working to expand funding for essential services and improve budget practices to meet current and future needs, especially for communities that have been historically left behind.

Assemblywoman Reynolds-Jackson Introduces Child Tax Credit Expansion Bill

Posted on by NJPP Staff

Today, Assemblywoman Verlina Reynolds-Jackson (D-Trenton) introduced legislation to expand and improve the New Jersey Child Tax Credit (CTC) to further reduce child poverty and support working families facing rising costs.

The proposal, A-5214, would increase the tax credit over two years for children under 6 years old — doubling the maximum credit from $500 to $1,000 — and expand eligibility for the program to include children age 6 through 11. The expansions would build on a policy with a proven track record of success at both the federal and state levels in directly assisting families.

“Our children are our future, and we must do everything we can to support them,” said Assemblywoman Verlina Reynolds-Jackson (D-Trenton), sponsor of the Child Tax Credit expansion bill. “The Child Tax Credit recognizes the high costs of raising kids, especially now as families face rising prices for groceries, housing, clothing, and other basic needs. This bill would provide much-needed relief for families by expanding the Child Tax Credit with larger benefits and so more children qualify. When families have the resources they need, it sets their kids up for success now and later in life.”

The expansion is similar to one proposed in a recent report by New Jersey Policy Perspective (NJPP), which found that an estimated 441,000 families across New Jersey would benefit from the expanded tax credit, including 713,000 children in households receiving the tax credit.

“Expanding the Child Tax Credit is a smart investment in the state’s future,” said Louis Di Paolo, Communications Director at New Jersey Policy Perspective (NJPP). “This proposal helps kids, targets relief to families who need it most, and will have both immediate and long-term benefits for the families who receive it and the broader economy. Policies like this are how we make New Jersey affordable for families struggling to keep up with rising costs.”

The expanded tax credit would be available to New Jersey families with annual incomes up to $80,000. After two years, the tax credit would break down as follows:

  • Households with an income of $30,000 or less will receive a tax credit of $1,000 for each child under 6, and $600 for each child age 6 through 11.
  • Households with an income of $30,000 to $40,000 will receive a tax credit of $800 for each child under 6, and $500 for each child age 6 through 11.
  • Households with an income of $40,000 to $50,000 will receive a tax credit of $600 for each child under 6, and $400 for each child age 6 through 11.
  • Households with an income of $50,000 to $60,000 will receive a tax credit of $500 for each child under 6, and $300 for each child age 6 through 11.
  • Households with an income of $60,000 to $80,000 will receive a tax credit of $300 for each child under 6, and $200 for each child age 6 through 11.

The original New Jersey CTC, also sponsored by Asw. Reynolds-Jackson, passed in June 2022 by a 31-6 vote in the Senate and 72-2 vote in the Assembly. Families with children under six years old started receiving their CTC payments earlier this year at the start of tax season.

# # #

Unions, Advocates, and Policy Experts Urge Lawmakers to Say No to Corporate Tax Cuts

Posted on by NJPP Staff

On Friday, members of For The Many NJ sent an open letter to Governor Murphy, Senate President Scutari, Assembly Speaker Coughlin, and members of the Senate and Assembly Budget Committees calling for the extension of the Corporate Business Tax surcharge.

“This is exactly the wrong time to be giving the most profitable corporations a $600 million tax cut. Such a gift for corporations and their shareholders takes away resources from our schools and infrastructure and undermines funding for areas that promote opportunity for all,” the letter states.

The Corporate Business Tax surcharge is a 2.5 percent tax on corporate profits exceeding $1 million. The surcharge is paid by the top 2 percent of the wealthiest corporations operating in the state, including multi-state corporations like Amazon and Walmart that make profits in New Jersey but are not headquartered here. The tax cut is estimated to cost the state at least $600 million annually.

“The wealthiest 2 percent of businesses should be paying more, not getting a tax cut when everyday New Jerseyans are struggling,” the letter continues. “We keep hearing about kitchen-table issues and middle-class New Jerseyans. How will corporate tax cuts help them?”

The letter was signed by 28 organizations and labor unions, including: New Jersey Policy Perspective, New Jersey Institute for Social Justice, ACLU of New Jersey, Latino Action Network, 32BJ SEIU, CWA, and the New Jersey Education Association.

The letter calls for lawmakers to extend the Corporate Business Tax surcharge so the state can continue investing in the programs that make New Jersey an engine of economic growth and opportunity.

A copy of the letter can be read here.

# # #
For The Many is a statewide coalition of more than 30 organizations working to expand funding for essential services and improve budget practices to meet current and future needs, especially for communities that have been historically marginalized.  

Less Than 1% of New Jerseyans Hold Over $746 Billion in Wealth

Posted on by NJPP Staff

A tiny fraction of New Jersey families hold a staggering amount of the state’s wealth, according to a new 50-state report by the D.C.-based research organization the Institute on Taxation and Economic Policy (ITEP). The wealth inequality highlighted by the holdings of these extremely wealthy families limits economic opportunities for everyday New Jerseyans, and both reflects and exacerbates racial inequality. Tax policy is a critical way that policymakers could start addressing this inequality, but right now federal and state tax codes barely tax extreme wealth at all, and instead often favor sources of income that are derived from wealth.

“Runaway wealth inequality is an enormous problem for New Jersey, but the good news is that we have the tools to fight it,” said Sheila Reynertson, Senior Policy Analyst at New Jersey Policy Perspective (NJPP). “Closing the tax loopholes that have helped build so much of this nation’s extreme wealth is a commonsense way that lawmakers in Trenton and D.C. can combat inequality and promote opportunity.”

The report defines extreme wealth as the wealth held by households with net worth over $30 million. This tiny fraction of families holds more than one in four dollars of wealth in the U.S. ITEP estimates that total extreme wealth will reach $371 billion this year in New Jersey and $26 trillion nationally.

Other key findings:

  • A nationwide tax of 2 percent on wealth over $30 million could have raised nearly $415 billion if it were in effect this year, including $9 billion from extremely wealthy New Jerseyans.
  • This tax would affect just 1 in 330 households in New Jersey, or 0.30 percent of the population. Nationally it would affect 0.25 percent of the population.
  • Ninety-two percent of extreme wealth is owned by white, non-Hispanic families.
  • A large share of New Jersey’s extreme wealth – 40 percent – is held in the form of unrealized capital gains, meaning investment income on which these families have yet to pay tax (and may never pay tax under current law). Nationally, this share is 43 percent.
  • A tax on the stock of unrealized gains in 2022 could be expected to raise between $529 billion and $3.9 trillion nationally depending on the tax rate chosen and the percentage of gains deemed to be realized. This includes between $3 billion and $54 billion from extremely wealthy New Jerseyan. The report models six different policy options for taxing unrealized gains.

 

In addition to a wealth tax or a tax on unrealized capital gains as outlined above, the report identifies other ways to strengthen the federal taxation of extremely wealthy people, including:

  • taxing increases in wealth annually as an asset grows (mark-to-market taxation)
  • taxing increases in wealth before they are passed on to heirs (ending stepped-up basis)
  • eliminating the tax preference that makes tax rates on realized capital gains lower than on income from work
  • strengthening the estate tax
  • creating an inheritance tax

 

All of these are viable policy options for lawmakers looking to curb wealth inequality.

At the state level, tax codes are already overwhelmingly regressive when it comes to income – and are even more lopsided when it comes to wealth. State lawmakers seeking to fix this imbalance in New Jersey’s tax code also have several readily available options as identified in the report, such as:

  • implementing new or increased current top income tax rates
  • raising rates on realized capital gains income
  • enacting progressive taxation of real estate wealth
  • strengthening taxation of corporate profits and
  • reinstating or enhancing estate and inheritance taxes

 

“A very small number of households hold a staggering share of nationwide wealth, and they’ve been able to grow their fortunes in part because our tax system asks very little of them,” said Carl Davis, ITEP’s research director and an author of the report. “New and strengthened taxes on extreme levels of wealth could dramatically reduce the runaway inequality we face today.”

###

New Jersey Policy Perspective (NJPP) is a nonpartisan think tank that drives policy change to advance economic, social, and racial justice through evidence-based, independent research, analysis, and strategic communications.

The Institute on Taxation and Economic Policy (ITEP) is a non-profit, non-partisan tax policy organization that conducts rigorous analyses of tax and economic proposals and provides data-driven recommendations on how to shape equitable and sustainable tax systems. ITEP’s expertise and data uniquely enhance federal, state, and local policy debates by revealing how taxes affect both public revenues and people of various levels of income and wealth.

New Jersey Policy Perspective Celebrates 25th Anniversary, Honors Progressive Champions

Posted on by NJPP Staff

By

Published on Sep 23, 2022 in General

On September 22, New Jersey Policy Perspective (NJPP) celebrated 25 years of policy research and policy wins.

At the think tank’s 25th Anniversary Gala at The Heldrich Hotel in New Brunswick, NJPP honored influential policy leaders whose contributions helped advance justice for everyone in the Garden State: Hetty Rosenstein, former New Jersey State Director of the Communications Workers of America (CWA); Michellene Davis, former State Treasurer and current President and CEO of the National Medical Fellowships; and former New Jersey Governor James J. Florio.

Founded by Jon Shure in 1997, NJPP is a nonpartisan think tank that drives policy change to advance economic, social, and racial justice through evidence-based, independent research, analysis, and strategic communications. For the past quarter of a century, NJPP has been at the forefront of efforts to secure a thriving future for everyone in New Jersey — from a $15 minimum wage, to paid sick leave, to a fairer tax code, and beyond.

“It’s my privilege to honor three policy leaders who significantly helped NJPP – and the state of New Jersey – throughout the last quarter century,” said Nicole Rodriguez, President of NJPP. “Governor Florio, Michellene Davis, and Hetty Rosenstein are fierce champions for working families, and their contributions through public service have helped millions of residents in every corner of the state.”

Hetty Rosenstein is widely regarded as one of the most influential labor leaders in New Jersey and has extensive experience in direct organizing for workers’ rights, economic justice, and social equality. She most recently served as State Director for New Jersey for the Communications Workers of America (CWA). Rosenstein was a key partner in many of NJPP’s policy wins including $15 minimum wage, paid sick leave, and the millionaires’ tax.

“Whenever workers’ rights were on the line in Trenton, NJPP was there with hard numbers to show that when workers win, we all win,” said Hetty Rosenstein, former New Jersey State Director of the Communications Workers of America. “From the Fight for $15 to the push for paid sick days, NJPP has a long history of putting workers and their families at the center of the state’s most pressing policy debates. It’s an honor to be recognized by NJPP and to be a part of their 25th anniversary celebration.”

Michellene Davis, former Treasurer of the State of New Jersey, assumed the role of President and Chief Executive Officer of National Medical Fellowships, Inc., (NMF) in May of 2021. Davis most recently served as Executive Vice President and Chief Corporate Affairs Officer at RWJBarnabas Health, the largest academic medical center system in New Jersey and one of the largest in the nation. Davis’ tenure as a leader in New Jersey’s health care industry continues to make an impact in New Jersey by making health care affordable and accessible for all New Jersey residents.

“Policy works best when it’s developed by and for the people, and this ethos is at the heart of NJPP’s research and advocacy,” said Michellene Davis, President and CEO of National Medical Fellowships. “I’m thrilled to be honored by NJPP on their 25th anniversary and welcome their partnership with National Medical Fellowships as we work to advance health justice.”

The Hon. James J. Florio has been active in public life for more than 50 years, including 25 years in elected office. Governor Florio currently serves on the board of directors of the New Jersey Health Care Quality Institute and as co-chair of the Regional Plan Association’s New Jersey Committee. He is a founding partner of Florio Perrucci Steinhardt & Cappelli LLC, and serves as chair of the firm’s environmental law and government and regulatory affairs law groups.

“Tonight we are thrilled to celebrate NJPP’s past achievements and recognize its future potential,” said Marcia Marley, Chair of the NJPP Board of Trustees and President of BlueWaveNJ. ”And we know that none of this would have been possible without the tireless work and support from tonight’s honorees. Thank you Governor Florio, Michellene, and Hetty for everything you have done for this organization and the people of New Jersey.”

New Jersey Policy Perspective will continue its 25th anniversary celebration on Friday, September 23 at their annual policy conference, Progress 2022: Justice for All, featuring keynote speaker Taifa Smith Buter, President of Demos, and Governor Phil Murphy.

Check out more photos from the evening below.

Photos by Frank Wojciechowski.

More Transparency Needed in American Rescue Plan Funding Process

Posted on by NJPP Staff

With only a fraction of New Jersey’s federal American Rescue Plan (ARP) funds remaining, a diverse coalition of labor unions, essential workers, and advocates called for more transparency in how funds are spent — and for lawmakers to provide direct relief to workers and families harmed most by the pandemic.

“If used correctly, these federal funds provide a once in a lifetime opportunity to invest in families and communities harmed most by the pandemic,” said Sheila Reynertson, Senior Policy Analyst at New Jersey Policy Perspective (NJPP). “But with more than $5 billion appropriated behind closed doors and few details available to the public, lawmakers must do a better job of providing direct relief to workers, families, and communities who need the most help, and in a transparent manner that invites public input before new spending is approved.”

Roughly 85 percent of the state’s $6.2 billion in ARP funds have already been appropriated without an opportunity for members of the public to weigh in on proposals before they’re approved. Unlike typical legislative hearings where policy experts, community members, and advocates have an opportunity to testify on proposals before they’re voted on, ARP funds have been approved either by Governor Murphy or members of the Joint Budget Oversight Committee without a chance for members of the public to provide feedback.

“We urge transparency in the State’s decision-making and allocation process for these remaining funds, and that New Jersey use these funds to bolster the financial recovery and stability of countless residents still reeling from the pandemic’s economic fallout,” said Maura Collinsgru, Director of Policy and Advocacy at New Jersey Citizen Action. “This includes $500 million for the 120,000 eviction prevention applicants who have not yet received financial assistance to remain in their homes, extending funding for families who received general or emergency assistance during the pandemic and now face termination in order to sustain their recovery, and expanding staffing and infrastructure in anticipation of the Public Health Emergency’s end so none of our 2 million residents enrolled in NJ FamilyCare are left behind. We cannot ignore now many New Jerseyans’ ongoing pandemic recovery or risk undoing much of the hard work of the last two years.”

Even after ARP funds are appropriated, the public documents detailing the approved projects often lack any meaningful description of where the funds will go. For example, lawmakers allocated $300 million worth of ARP funds to water infrastructure, but without basic details, it’s unclear which communities will benefit. Another $300 million was granted to Rutgers University, but only thanks to a reporter’s diligence did we learn that a third of it will pay for new sports facilities.

“Essential workers like me saved lives during the pandemic — we shouldn’t have to worry about how to make rent or put food on the table,” said Mariana Velasquez of Make the Road – New Jersey. “But with increasing inflation, we are struggling to survive. Our elected officials have a choice: They can ignore the issues impacting our communities, or they can use remaining federal funds to provide critical relief to essential workers through hazard pay and a permanent expansion of the safety net.”

More than $2.4 billion of ARP funds were appropriated in the latest state budget that took effect July 1. These appropriations did not include direct relief for immigrant workers, hazard pay for essential workers, rental assistance, or cash assistance for residents living in poverty who maxed out their benefits through the Temporary Assistance for Needy Families (TANF) program.

“The fight for hazard pay for essential workers is one that needs to be a priority for the State of New Jersey,” said Kevin Brown, Executive Vice President and New Jersey State Director for SEIU 32BJ. “Essential workers and their families are in great need of recognition and change. They deserve fair compensation for providing a safe and reliable environment for commercial tenants and apartment residents while putting themselves, their coworkers, and their families at enormous risk. Hazard pay for essential workers is a crucial step towards equity and fairness in the Garden State, and these issues need to be discussed openly and with transparency.”

“The American Rescue Plan dollars have the opportunity to be transformative for long-festering needs where lack of investment was exacerbated by the shock of the pandemic’s impacts,” said Doug O’Malley, Director of Environment New Jersey. “More than two years after the onset of the pandemic, those needs are still there and we should have a more transparent process to give people the chance to publicly testify to the JBOC committee on the proposed spending plans. There are clear needs for our state’s environment and infrastructure from crumbling water infrastructure and lead service lines and the need for more reliable NJ Transit bus and rail service – and the public should have more of an opportunity to weigh in.”

“The State must invest $30 million to fund a comprehensive Language Access Bill ensuring that government meets the needs of our diverse families through timely, accurate translation and interpretation,” said Laura Bustamante, Policy and Campaign Manager at New Jersey Alliance for Immigrant Justice. “At no time was this need more evident during the COVID-19 pandemic. New Jersey is a leader in the diversity and size of our immigrant communities, so it is fitting that we are now leading with the country’s most expansive language access proposal. We expect nothing less than a transparent process from our government on how this ARP funding will be allocated and demand that it be allocated to programs like these that support the resilience and recovery of our communities.”

“Our children continue to struggle with the impact of the pandemic — we urge the Governor to devote a small portion of remaining ARP funds to expand community school approaches to more high-poverty public schools throughout our state,” said Greg Stankiewicz, statewide coordinator of the New Jersey Community Schools Coalition. “Moreover, we stand with our colleagues in calling for increased transparency in how the Governor and Legislature distribute these vital federal recovery funds.”

“Given the opaque process and very limited time for public input, we worry that the public’s best interest will not be prioritized,” said Joe Marchica, Co-Chair of Our Revolution Trenton Mercer. “Direct aid is the most beneficial economic stimulus method, both for people in need and the whole economy. We ask for substantial funding for hazard pay, undocumented New Jerseyans, and aid sent directly to low- and no-income people. That’s what should take priority — not more corporate tax breaks and kickbacks.”

“We are at a critical juncture when it comes to funding climate, lead service line replacements, waste water and drinking water infrastructure, mass transit not highway expansions,” said Amy Goldsmith, New Jersey State Director of Clean Water Action. “ARP funds must be used wisely to expand the Garden State’s capacity to create family-supporting green jobs, protect our communities from harm, and lift up people and places that have largely been left behind or out of the economy in the past because of the color of their skin or the ZIP code they live in.”

# # #

For The Many NJ is a statewide coalition of more than 30 organizations working to expand funding for essential services and improve budget practices to meet current and future needs, especially for communities that have been historically left behind.

New Jersey Policy Perspective Expands Into Transportation and Environmental Policy, Adds New Analyst

Posted on by NJPP Staff

New Jersey Policy Perspective (NJPP) announced today that the organization has hired Alex Ambrose as a Policy Analyst to expand the think tank’s work on policies at the intersection of transportation and environmental justice.

In this role, Alex will connect climate and transit policies to their impacts on the broader health and economic well-being of New Jersey families and communities. Specifically, Alex’s research will focus on improving the state’s bus and rail systems, building out infrastructure for electric vehicles, and finding ways to promote a clean energy future through the state budget.

“Alex is a rising star in the environmental policy world and brings incredible experience to the NJPP team,” said Nicole Rodriguez, President of NJPP. “With climate change being the single biggest threat to New Jersey’s short- and long-term success, we’re fortunate to have someone with Alex’s breadth of knowledge lead our work mapping out policy solutions that center people harmed most by pollution and global warming.”

Prior to joining NJPP, Alex Ambrose was Policy Associate at the Association of New Jersey Environmental Commissions (ANJEC) where she researched and advocated for policies that protect clean water, preserve open space, and reduce greenhouse gas emissions with an emphasis on equity. Most recently, she worked to pass plastic pollution legislation including the statewide ban on single-use bags. Previously, Alex served as a Policy Assistant at the New Jersey League of Conservation Voters (NJLCV).

“It’s an honor to join an organization like NJPP that sets the standard for combining rigorous policy research with a dedication to advancing justice for all,” said NJPP Policy Analyst Alex Ambrose. “In this new position, I will do everything in my power to make sure those hit first and worst by the climate crisis are prioritized in the state’s halls of power.”

In addition to her work with NJPP, Alex currently serves as the Chair of the Clinton Township Environmental Commission and is pursuing her Master’s in Public Administration at Rutgers University. She received her Bachelor of Science in Ecology, Evolution, and Natural Resources from Rutgers University with a minor in Environmental Geomatics.

Celebrating its 25th anniversary, NJPP is a “think and do” tank, driving policy change to advance economic, social, and racial justice through evidence-based independent research, analysis, and advocacy.

# # #

«« Previous Posts∞Older Posts »»