If you are following the news in recent weeks, there is no doubt that you have heard details outlining the pending tax reform legislation.
The Greater Toms River Chamber of Commerce business community supports tax reform, but we cannot support the proposed legislation in its current form.
While the proposal may result in a net positive for the Country, that would not be the case at the State-level for people of New Jersey.
Some of the direct downsides of the proposed legislation include the elimination of state and local tax deductions and limiting the property tax deduction to $10,000 (per the House GOP proposal – the Senate is looking for a plan that eliminates credits and deductions altogether). Additionally, there are various business industries that would, specifically, be harmed by the proposed legislation including the healthcare and higher education sectors.
One of the largest, indirect, downsides of the proposed legislation is the continued, and potentially increased, outmigration that we are seeing Outmigration results in the loss of jobs, economic activity, labor income, and household income. Already staggering statistics put New Jersey near the top of the list for the highest, domestic, outmigration in the United States year after year.
We support new jobs, developing a skilled workforce, and lowering the tax burden. Seeing too many obstacles for the people of New Jersey to financially overcome with the proposed legislation, we cannot support it in its current form, and look forward to resolutions that will ensure that New Jersey is affordable and competitive moving forward.