Earlier today, the Task Force on EDA Tax Incentives released its final report on New Jersey’s scandal-plagued corporate tax subsidy programs. The report found that New Jersey awarded over $500 million in tax breaks to companies that did not deserve them. In response to the report, New Jersey Policy Perspective (NJPP) releases the following statement.
Sheila Reynertson, Senior Policy Analyst, NJPP:
“This report provides further evidence that New Jersey’s experiment with corporate tax breaks was a costly failure that provided little return on investment for taxpayers. Fortunately, the state’s bloated, scandal-ridden corporate tax subsidy programs expired over a year ago without a replacement, and the state is better off as a result.
“There is no good reason for New Jersey to offer limitless tax incentives to large and already successful corporations. It’s a glass half empty view of New Jersey’s economic potential that ironically robs the state of resources needed to promote a robust and healthy business climate. To remain a viable option for companies to relocate to and expand in, New Jersey should instead focus on the building blocks of a strong economy, like strong public schools that maintain an educated workforce and reliable transit infrastructure so workers can get to their jobs on time.
“With a state budget ravaged by the fallout of a global pandemic, lawmakers must stop awarding billions of dollars in corporate tax subsidies; it is not a wise use of public resources. Mounting research finds that tax subsidies for corporations are a subpar investment when compared to other state policies and investments that are proven to help grow an economy.
“Putting people first by investing in the development of lifelong skills through things like subsidized child care and community college grants has a better return on investment and more positive impact on the state economy than do shovel-ready photo ops that allow politicians to falsely claim they helped create jobs by luring businesses to the state.
“We can’t afford that kind of posturing anymore.”
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