In Shutdown Standoff, Will New Jersey Tax Job Creators or Embrace the Highest Corporate Tax Rate in the Country?
The New Jersey government is set to shutdown on Saturday, June 30, 2018 (today!) if lawmakers cannot strike a deal by midnight.
But, Sweeney and Coughlin will not back the millionaire tax signature piece of the governor’s plan as proposed, no matter how much Murphy puts his foot down and wields the bully pulpit. Sweeney said he opposes the tax because the GOP tax law already punishes wealthy New Jersey taxpayers by capping at $10,000 the amount of state and local taxes they can deduct from their federal taxes. No doubt, extreme tax hikes on individual job creators would put negative pressure on hiring and consumption, and would be highly visible to high-profile voters, lobbyists and major campaign contributors.
Moreover, the ideological rationale for the corporate tax hike is tough to swallow. We are taxing a on success and job creation, which is likely to cause creative accounting and job suppression—both undesirable. We are taxing a on business size and commitment of resources to our state – in, what I can only take as a warning to any business foolish enough to consider moving corporate operations here – a message that they are better off in Texas. We are taxing a on healthcare, banking, food, and communication. One cannot imagine a plan that could have a more detrimental effect to the economy and which would lead to a larger loss of jobs, albeit, not in the short term. Moreover, the messaging is tragically misguided. We want large corporations, particularly in core areas of the economy, centralizing in our State, not fleeing from it.
, trying to benefit from their entrepreneurial zeal to vault over the widening tax gap. The governor and legislature support new taxes on home-sharing services like Airbnb, ride-sharing services like Uber and Lyft, and tobacco products and electronic cigarettes.
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