As the Legislature reconvenes this month, the New Jersey Chamber of Commerce's lobbying team will return to the State House to advocate for policies aimed at improving the state's business environment and quality of life for employees.
Polling consistently indicates that the economy remains a primary concern for Americans and employers. A recent survey conducted among over 500 members of the New Jersey Society of Certified Public Accountants (NJCPA) revealed apprehensions about the state’s economic outlook for the latter half of 2024, with 43% expecting conditions to deteriorate.
The survey indicated that 74% of respondents believe reducing regulatory burdens would enhance the business climate, while 43% emphasized the need to lower corporate tax rates. These findings underscore a demand for measures that attract businesses to New Jersey, stimulate growth, and generate employment opportunities.
AJ Johnson, CEO and executive director at NJCPA, remarked, “These insights are a telling sign that our state and national economic conditions need to improve. We want businesses moving into New Jersey, bringing offices and jobs here and that means helping businesses to remain competitive and grow to their potential.”
The New Jersey Chamber has long advocated for bipartisan cooperation in developing economic policies that promote widespread prosperity. The organization stresses that overcoming partisan disputes is essential for advancing progress both within the state and nationally.
New Jersey faces significant challenges, including an unsustainable growth rate in its state budget which exacerbates structural deficits. Governor Murphy’s Corporate Transit Fee (CTF) on large employers has also raised concerns; 65% of NJCPA survey respondents believe it will adversely affect businesses.
Other issues highlighted by NJCPA respondents include inflation (57%), political dysfunction in Trenton (53%), and hiring difficulties (47%). Many CPAs have advised clients to consider relocating due to New Jersey’s high cost of doing business. Notably, 65% reported a decline in high-income clients maintaining residency in the state.
This survey follows New Jersey's drop from No. 19 to No. 25 in CNBC’s 2024 Top States for Business rankings. The state placed second-to-last in business friendliness and showed declines in infrastructure, cost of living, and technology and innovation categories—major areas of concern.
Despite these challenges, there are positive developments. Moody’s recently upgraded New Jersey’s credit outlook to “positive,” commending full pension payments but warning against reliance on one-time revenue sources and a depleted surplus as potential risks for future credit downgrades.
In response, the New Jersey Chamber of Commerce urges elected officials to prioritize policies fostering at least 3% annual economic growth over the next decade. Sustained growth is expected to create jobs, increase incomes, drive innovation, and improve living standards across New Jersey.
This approach aligns with the U.S. Chamber of Commerce’s ‘Growth and Opportunity Imperative,’ emphasizing immediate action on spending controls and addressing structural deficits while promoting a competitive business environment comparable to neighboring states like New York and Pennsylvania.
Through bipartisan collaboration, sound economic strategies, and fiscal responsibility commitments, these challenges can be effectively addressed. Moody’s indication of a potential credit upgrade suggests readiness for growth contingent upon prudent actions.
The call is clear: collaborative efforts are needed to build a prosperous future where success is attainable for all residents.
