GOP CALLS FOR BROAD TAX CHANGES TO IMPROVE NJ’S BUSINESS CLIMATE

In response to the Tax Foundation’s latest report that shows New Jersey has the worst tax system in the nation for the second year in a row, Assembly Republican legislators are calling for sweeping changes in state tax laws

“Now more than ever with the downturn in the economy, New Jersey needs to drastically alter the way it does business,” said Assemblyman Scott Rudder, R-Burlington. “It is imperative that we drive down costs of state government and at the same time change the tax codes and regulations in order to attract more business to New Jersey.”

The Tax Foundation, which unveiled its 2009 State Business Tax Climate Index Monday, revealed that New Jersey has the highest property taxes, the second highest personal income tax, sixth highest corporate income tax, and the ninth highest sales tax in the country. A Foundation economist noted that the current national banking crisis will likely result in reduced tax collections in the state leading to continued job losses and reduced capital gain and dividend income. It will also result in reduced sales tax collections and increases in property taxes due to reduced realty transfer tax revenue.

Assembly Republican Leader Alex DeCroce, R-Morris and Passaic, again called for the Corzine Administration to lower the state’s onerous tax burden, reduce choking regulations and cut government spending, adding that Governor Jon Corzine and his Democrat colleagues have stunted job and economic growth opportunities that would have benefited struggling middle class families and businesses.

“As stocks on Wall Street continue to plummet, that will only exacerbate the problems with this state’s economy which has been failing for years,” stated DeCroce. “We can’t fix what’s wrong on Wall Street, but we can turn things around on State Street.”

The Index ranks states based on the taxes that matter most to businesses and business investment: corporate tax, individual income tax, sales tax, unemployment tax and property tax. The states are scored on these taxes, and the scores are weighted based on the relative importance or impact of the tax to a business.

“What did Democrats think was going to happen with 102 new taxes and billions in debt? Let’s face it, New Jersey lost its competitive edge years ago under Democrat rule,” stated DeCroce. “What little reforms have occurred clearly are not enough. New Jersey has been reduced to minor league status as far as our business climate is concerned. If Governor Corzine and his Democrat allies don’t step up to the plate and get us back in the big game, I fear we will find ourselves in the same position as California – looking for a federal government bailout.”

Republican legislators offered a plan in May that identifies $1.32 billion in wasteful and unnecessary spending and includes a long-term economic growth component.