With just a few weeks left before the state must pass a budget or face another government shutdown -- something Governor Phil Murphy is already planning for according to media reports -- there's new troubling reports that New Jersey's economy may already be slowing even before a final decision has been made about the Governor's income and sales tax hikes.
According the New Jersey Bankers Association’s annual economic survey, seven out of 10 respondents expect the state economy to weaken or decline if Governor Murphy's tax hike proposals -- totaling $1.5 BILLION -- are enacted. Among other taxes, the Governor wants to raise the sales tax to the nation's second highest, one of the most regressive taxes available. The Bankers' group predicts that higher state taxes will continue to push companies and jobs out of the state. That downcast prediction is in contrast to their view of the national economy, which the same group saw as growing in the near future.
New Jersey faces significant financial problems that won't be solved by a slowing economy. It's time to reform government and rein in run away costs -- not raise taxes.
New Jersey Future Fund