Earlier today, Governor Phil Murphy unveiled a package of reforms to New Jersey’s corporate tax incentive programs. The proposals follow months of independent reports and task force hearings highlighting fraud and waste at the state Economic Development Authority. In response to the proposed reforms, New Jersey Policy Perspective releases the following statement.
BRANDON McKOY, NEW JERSEY POLICY PERSPECTIVE PRESIDENT:
“The tax subsidy reforms proposed by Governor Murphy are necessary to correct the serious flaws in New Jersey’s economic development programs. Since the passage of the Economic Opportunity Act in 2013, New Jersey has been a national outlier in how it operates its tax incentive programs, with the state spending five times the national average on corporate subsidies. With the programs guiding the Economic Development Authority set to expire at the end of the month, there has never been a more opportune time for meaningful reform.
“This package of reforms is forward thinking and, more importantly, follows best practices from across the nation. Hard caps on awards and stronger oversight will protect taxpayers and the state’s budget, while better targeting of awards and improved labor protections will ensure the benefits of corporate subsidies are shared broadly among business owners, their workers, and local communities alike.
“We look forward to working with Governor Murphy and members of the Legislature in the pursuit of economic development policies that are fiscally responsible and prioritize the best interests of everyday New Jerseyans.”
New Jersey Policy Perspective (NJPP) is a nonpartisan think tank that drives policy change to advance economic justice and prosperity for all New Jerseyans through evidence-based, independent research, analysis and advocacy. NJPP has long-advocated for reforming New Jersey’s corporate subsidy programs.
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