NJCPA Supports Bills to Make New Jersey More Affordable

 – February 28, 2022
NJCPA Supports Bills to Make New Jersey More Affordable

New Jersey consistently ranks as one of the least affordable states in the nation with the worst business tax climate. Having the highest property taxes in the nation, among the highest income taxes and high retirement costs all contribute to New Jersey being unaffordable for many and less affordable than many of our competitor states.

The New Jersey Society of CPAs (NJCPA) is supporting four bills that advance the goals of increasing affordability and economic growth in New Jersey. These four bills will help address those high taxes that make the state less affordable and will level the playing field for our businesses that are competing with businesses in more affordable states.

  • S-676 (Bucco, Oroho): Better aligning the state income tax brackets to natural wage increases is important to avoid unintended tax increases and to advance tax fairness and equity. This is especially true when inflation runs rampant, as we are currently experiencing. Over time, this bill will provide relief to many taxpayers, making New Jersey more affordable for families, retirees, young people early in their careers and small businesses. Interestingly, this concept of preventing “bracket creep” has widespread support from both fiscally conservative (support tax cuts) and fiscally progressive (support relief focused on lower-income taxpayers) advocates. Almost half of the states have some form of indexing for their state income taxes, and the federal government indexes their income tax brackets.
  • S-330 (Singleton, Scutari): Property taxes are a business issue, too. New Jersey’s property taxes are the highest in the nation and represent the largest state and local tax that businesses pay ($14.9 billion paid by business out of total state and local taxes paid by business of $31.7 billion). This legislation will provide property tax relief to all taxpayers with its requirement that $330 million in restored energy tax receipts funding reduces the property tax levy. That amounts to about a 1-percent reduction in the total statewide levy of more than $31 billion.
  • S-737 (Lagana, Gopal) and S-951 (Turner): This legislation will provide tax relief in retirement planning and make it more affordable to retire in New Jersey. Outmigration of wealth has continued to hurt New Jersey’s economic growth, and making it easier to retain wealth through retirement can help reverse some of that loss.

All four bills passed the Senate Budget and Appropriations Committee on Feb. 28 and now move on to the full Senate. The Assembly companion bills will also face a committee vote.