The economic climate in New Jersey has been described as unpredictable, with businesses facing challenges that hinder long-term investment and expansion. Tom Bracken, President and CEO of the New Jersey Chamber of Commerce, expressed concerns over Governor Murphy's proposed $58.1 billion state budget, the largest in the state's history. Bracken argues that instead of fostering a pro-growth environment, the budget introduces more uncertainty.
Bracken points out several issues with the proposed budget: no additional funding is allocated to agencies supporting business growth like the New Jersey Economic Development Authority; significant cuts have been made to the Main Street Recovery Fund; and new tax increases are being imposed on online gaming, warehouse deliveries, property sales over $1 million, landline and cellphone bills, and cannabis purchases.
Governor Murphy had previously established a New Jersey Economic Council aimed at promoting economic opportunities within the state. However, Bracken believes this budget undermines those efforts.
A survey by the New Jersey Society of CPAs revealed that 80% of certified public accountants believe this budget will negatively impact New Jersey’s economy in the long term. They emphasize the need for cost-cutting measures and lower corporate taxes to make New Jersey more attractive for business.
Nationally, small business confidence is low, with only 12% of small business owners considering it a good time to expand. On a federal level, there is uncertainty surrounding tax policy if Congress does not extend provisions from the 2017 Tax Cuts and Jobs Act.
In conclusion, Bracken urges legislative action to foster a competitive economic environment in New Jersey by reducing spending and taxes. Legislative budget hearings begin on March 19 with a final decision due by June 30. The Chamber's lobbyists will advocate for member companies during these hearings.
