The New Jersey OLS Director recently reported to the Assembly Budget Committee that the office believes that state tax receipts over the next 15 months will be well below those expected by the Corzine administration and even lower receipts are expected next year.
“There is a delicate balance between how much tax money is taken in and how that money is generated; businesses are major contributors to a states economic stability and taxes matter to business. The business tax climate here in New Jersey makes it extremely difficult for small businesses to prosper”, said Dr. P. Kelly Hatfield, Republican candidate for Congress representing the Seventh District. “New Jersey is ranked in 49th place nationally, having not gained any ground but rather falling from 48th since 2003”, she said referring to The Tax Foundation’s “State Business Tax Climate Index” which averages a states corporate, individual, sales, unemployment insurance and property tax rankings.
Dr. Hatfield pointed out that most small businesses pay federal taxes at the individual income tax rate, “when those rates were reduced taxes on small business were cut, which freed up money to hire new workers and expand businesses. Hopefully those federal cuts can be preserved, I would work hard in Washington to have them made permanent,” she said. “Those cuts must be combined with some action by NJ lawmakers, who have the power to determine how friendly our state tax system is to business. With our neighboring states of Delaware and Pennsylvania ranked in 9th and 27th places respectively it is no wonder that our businesses are taking their jobs across the river to neighboring states.” US Department of Labor reports indicate that most mass job relocations are from one state to another rather than overseas.
“If New Jersey expects to generate enough revenue to survive what appears to be a recession than we have to take the necessary steps to grow our economy which would create jobs for NJ residents,” Hatfield said. “Those steps include lower corporate taxes which would encourage businesses to grow here.”
A proven leader in the fight against wasteful government spending and higher taxes, Dr. P. Kelly Hatfield, has signed the Americans for Tax Reform pledge and says, “We must cut the bureaucratic red tape that hinders small businesses which create 80% of all new jobs in America.”
#### |
