Wednesday, October 29, 2014
NJ's Tax Burden Drags Us Down!
The Tax Foundation has released its 2015 State Business Tax Climate Index and the news for New Jersey is grim yet again: The Garden State has the overall highest tax burden in the entire country, as well as the highest property taxes.
The report states in part, “New Jersey…suffers from some of the highest property tax burdens in the country, is one of just two states to levy both an inheritance and an estate tax, and maintains some of the worst structured individual income taxes in the country.”
AFP state director Daryn Iwicki responded to the Tax Foundation report:
“Yet again the Tax Foundation ranks New Jersey last mainly due to our terrible property taxes and the fact we have the worst death taxes in the nation. This is status quo in New Jersey. No matter how many reports or articles are written about New Jersey’s tax climate the obstructionists in the General Assembly and Senate keep any real conversations of change off the table.
“The sad reality is New Jersey’s worst-in-the-nation tax burden is the biggest reason our economy is not growing or creating jobs and opportunity for our residents. The Tax Foundation rankings make it clear:states with lower taxes do better. Wyoming, the lowest tax state, saw their economy grow 7.6% last year. By contrast New Jersey’s economy grew 1.1% and second worst New York grew a measly 0.7%. The rankings also back up research by the Mercatus Center linking high taxes to poor economic performance.
“Lawmakers in Trenton need to take heed that higher taxes are killing our state. If you care about helping people rise out of poverty, providing them with opportunity and a chance to earn high wages, the way out is by cutting taxes and spending and making state government smaller so our small businesses and entrepreneurs can prosper.
“One simple fix and something which would send a clear message throughout New Jersey is eliminating the estate tax. This has bipartisan support in the Senate and Assembly, yet bills just sit in committee without being heard because party bosses keep them from seeing the light of day.
“Instead the only proposals we do hear would only make our tax climate even worse, like raising the gas tax and income tax even higher. This is wrong, unfair, and will continue to hurt New Jersey if we continue to act in this manner.”