The ‘broken’ system of taxing businesses in New Jersey should be replaced by one that is based on logic, without loopholes or deductions.
Much is written about the need to attract and retain businesses in New Jersey. A common practice in New Jersey and most states is to offer business tax incentives to either locate or retain corporations that are “thinking” about or “threatening” to move for a better business climate. Local governments offer subsidies and other incentives to reduce the property tax burden for the corporations. At the state level – which is the focus of this article – corporations are offered incentives to reduce their corporate tax liability.
Richard F. Keevey is the former Budget Director and Comptroller for the state of New Jersey – appointed by two governors from each political party. He is currently a senior policy fellow at the Bloustein School of Planning and Policy at Rutgers University and a lecturer at Princeton University. Richard L. Kaluzny, is a PhD economist from the University of Wisconsin and is the former Director of Revenue and Tax Economic Analysis for the state of New Jersey.