Late Tuesday, Governor Murphy and legislative leaders announced a deal to renew New Jersey’s corporate tax subsidy programs. The proposal, which has yet to be publicly released, sets an enormous cap of $11.5 billion over six years. Lawmakers plan to hold hearings on the bill on Friday and pass the legislation on Monday. In response to the proposal and lack of transparency, New Jersey Policy Perspective (NJPP) releases the following statement.
Brandon McKoy, President, NJPP:
“Fast-tracking an $11.5 billion corporate tax incentive program is a slap in the face to New Jersey taxpayers. Study after study, as well as New Jersey’s own recent history, shows that corporate tax breaks have little effect on job creation or the broader economy. Instead, they rob the Treasury of much-needed funds and make it difficult to invest in areas of proven economic growth, like public schools and transit infrastructure.
“Good government groups and grassroots activists have fought for years to rein in and reform New Jersey’s runaway corporate tax subsidy program. While this bill includes important oversight and independent review provisions to help prevent fraud and abuse, those safeguards are completely undermined by the bloated $11.5 billion price tag. There is no doubt that this will do long-term damage to the state’s already strained finances. It also normalizes a comically high level of subsidies and cements New Jersey’s status as woefully out of line with the development programs of comparable states. Simply put, New Jersey cannot afford this deal.”
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 advocacy.
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