As the Legislature returns this month, our New Jersey Chamber of Commerce lobbying team will be back in the State House pushing for policies that will make New Jersey a better place for our members to run their businesses – and for their employees to live and raise a family.
We are motivated by polling that consistently shows that the economy remains the top concern for Americans and employers. A recent survey of more than 500 members of the New Jersey Society of Certified Public Accountants (NJCPA) revealed unsteady views on the state’s economy for the second half of 2024, with 43% expecting it to worsen.
Most respondents (74%) emphasized that reducing burdensome regulations would improve the business environment. Another 43% emphasized the importance of cutting corporate tax rates. These insights highlight the need for proactive steps to attract businesses to New Jersey, encourage growth, and create jobs.
AJ Johnson, CEO and executive director at the NJCPA, said, and I could not agree more, “These insights are a telling sign that our state and national economic conditions need to improve. We want businesses moving into New Jersey, bringing offices and jobs here and that means helping businesses to remain competitive and grow to their potential.”
The New Jersey Chamber has long said that bipartisan cooperation is essential. Leaders from both parties must work together on economic policies that foster prosperity for all. Moving beyond constant disagreements is key to unlocking progress for our state and country.
New Jersey’s challenges remain significant. The state budget has grown at an unsustainable rate, worsening our structural deficits. The introduction of Gov. Murphy’s Corporate Transit Fee (CTF) on large employers has raised concerns among 65% of NJCPA survey respondents, who believe the fee will negatively impact businesses.
NJCPA survey respondents also expressed concerns about inflation (57%), political dysfunction in Trenton (53%), and hiring difficulties (47%). Many CPAs reported advising clients to consider relocating due to New Jersey’s high cost of doing business. Alarmingly, 65% have noted a decline in high-income clients maintaining residency in the state.
The survey comes immediately following New Jersey moving in the wrong direction, falling from No. 19 to No. 25, in CNBC’s 2024 Top States for Business rankings. We placed second-to-last in business friendliness, we have one of the highest costs of doing business, and we fell in the infrastructure, cost of living, and technology and innovation categories. All major causes for concern.
Still, there are reasons for optimism. Moody’s last month improved New Jersey’s credit outlook to “positive,” praising the state’s full pension payments. However, Moody’s also cautioned that reliance on one-shot revenue items and a depleted surplus could lead to future credit downgrades. This serves as a reminder that our financial standing can only improve if we make sound fiscal decisions moving forward.
In light of this, the New Jersey Chamber of Commerce is calling on elected officials to prioritize policies that support at least 3% economic growth annually over the next decade. Sustained growth will create jobs, raise incomes, spark innovation, and enhance the quality of life for New Jersey families and individuals.
This strategy aligns with the U.S. Chamber of Commerce’s ‘Growth and Opportunity Imperative,’ and it couldn’t be more crucial for our state. We must act now to address the state’s spending and structural deficits to avoid future tax increases. At the same time, we need to cultivate a more competitive business environment to ensure New Jersey can thrive alongside neighboring states like New York and Pennsylvania.
Through bipartisan collaboration, smart economic policies, and a renewed commitment to fiscal responsibility, we can meet these challenges head-on. Moody’s, signaling a potential credit upgrade, shows that we are poised for growth—but only if we take wise, deliberate action.
Let’s work together to build a stronger New Jersey for all – and one where prosperity is not a dream but achievable.
