NJCPA Responds to Governor Murphy’s Proposed FY 2019 Budget
March 14, 2018
Statement by Ralph Albert Thomas, CEO and Executive Director
The New Jersey Society of Certified Public Accountants (NJCPA) applauds Governor Phil Murphy for developing a comprehensive budget plan that promotes critical priorities including education, mass transit, workforce development, and public health and safety. The NJCPA also commends the administration’s efforts to alleviate the tax burden on our citizens by increasing the property tax deduction to $15,000.
The NJCPA has long advocated for policies that will generate economic growth and supported a fair tax system that enables companies and individuals to thrive. We are concerned that the increased spending and revenue raisers in the Governor’s budget will have far-reaching consequences, affecting New Jersey’s ability to grow and attract business.
Our members serve tens of thousands of businesses and individuals. They are on the front lines of the state’s economy, in the trenches with the people who make the thousands of decisions every day, big and small, that shape New Jersey’s economic climate. Our members are, by and large, practical and realistic. They know that the state can’t tax its way to prosperity.
A millionaires’ tax directly impacts small businesses that flow their income taxes through personal returns. We already have some of the highest personal income and business taxes in the nation, and our rates compare unfavorably with neighboring states. The proposed marginal tax rate of 10.75 percent on income above $1 million would put New Jersey well above New York State’s rate (8.82 percent) and be more than three times Pennsylvania’s flat rate (3.07 percent).
NJCPA members already hear objections about New Jersey’s high taxes from clients who are looking to leave New Jersey. In a member survey, 75 percent said they have recommended to some clients that they move out of state. In short, the proposed budget plan will be counterproductive.
Additionally, while we appreciate the Governor’s efforts to help working families, we believe increasing the minimum wage to $15 and imposing another mandate on businesses will have a particularly negative impact on small businesses throughout the state.
We need to work together to provide an environment that not only fosters growth but adapts quickly to changing business needs.
We commend the Governor’s efforts to grow the state’s economy and stand ready to be a resource to his administration.