Longtime readers know that ROI-NJ takes a bit of a skeptical view of all rankings, as even the data can be questioned. However, because the administration frequently uses positive rankings of states as part of its communications (see the scorecard I created during my trip to East Asia), it is difficult to provide rankings that do not necessarily favor states. seems fair.
It's up to you to judge their effectiveness.
On Thursday, the New Jersey Chamber of Commerce will release its annual Regional Business Environment Analysis. It evaluates seven states in the Mid-Atlantic region (Maryland, Delaware, New Jersey, Pennsylvania, New York, Connecticut, and Massachusetts) on a six-point scale. Individual business cost factors that are considered to measure the competitiveness of a business:
· minimum wage;
· Maximum income tax rate.
· Highest corporate tax rate.
· State sales tax plus local average tax rate.
· Property taxes paid as a percentage of personal income.
· Maximum UI contribution per employee.
Each state was then given a score.
State rates in each category are scored from 1 (least competitive) to 7 (most competitive).
New Jersey finished last among states, scoring just 10 points, well below the rest.
New Jersey not only pays the highest corporate and property taxes as a percentage of personal income in the region, but also has the highest income tax rate, state sales tax, minimum wage per employee and highest unemployment insurance tax burden. .
Maryland and Delaware were both tied for first with 34 points. Pennsylvania ranked third with 30 points, followed by Massachusetts (24), Connecticut (21) and New York (19).
The report was authored by Kyle Surrender, director of economic policy research at NJBIA.
NJBIA CEO Michele Sikelka, who has been a vocal critic of the state's business policies, particularly the recently proposed corporate transit fee, said the numbers show the state is not creating a strong business environment.
“Over the past year, our policymakers have made it clear that New Jersey is an expensive state to do business in, and that affordability and regional competitiveness are important factors in our economy. ,” she said. “Sadly, their actions ignore their words and being a national outlier when it comes to competitiveness seems irrelevant to them.
“What our policymakers are missing is the fact that our businesses rely on their words and actions when considering investments. Tax increases are bad enough, but broken promises The process of arriving at tax increases through lack of and notification sends a clear message that job creators don't matter.
“Beyond the numbers that show New Jersey to be an outlier in cost factors for doing business, we seem to have a mentality that we are willing to make things even worse. It's a sad time when negative attitudes towards employers are matched by negative numbers. We have to do better for business.”
Surrender said the tax ID number is key.
“New Jersey businesses are stuck in a tax rut, and there seems to be no way out of it,” he said.
“The more than $1 billion in UI tax increases for employers post-pandemic, which could have been mitigated with federal coronavirus relief funds, significantly increased the amount employers pay per employee each week. Ta.
“With the proposed new permanent 2.5% corporate income surcharge, New Jersey looks set to continue to be an outlier regionally and nationally as a driver of business costs.”