TRENTON, N.J. — Assemblymen Christopher DePhillips and Brian Rumpf are calling for a special Assembly Budget Committee hearing to examine why major employers have reduced operations or left New Jersey.
The Republican lawmakers said the committee should hear from business leaders whose companies have moved jobs, consolidated operations or reduced their presence in the state.
“Businesses are waving red flags and Trenton keeps hitting snooze,” said Assemblyman DePhillips (R-Bergen), the GOP Conference Leader. “The headlines are impossible to ignore. Employers are dealing with crushing taxes, skyrocketing energy costs, and regulatory burdens that make it easier to invest somewhere else. We need to lower the corporate business tax and sales tax.”
DePhillips and Rumpf said they want lawmakers to consider two bills sponsored by DePhillips. One measure, A2654, would gradually reduce the corporate business tax to 2.5%. Another, A2702, would lower the state sales tax to 6%.
“The reasons for leaving or minimizing are clear, New Jersey’s high taxes and difficult regulations are cited by companies every time,” said Rumpf (R-Ocean), the GOP Budget Officer. “The headlines and companies’ statements are impossible to ignore. Employers are dealing with crushing taxes, skyrocketing energy costs, and regulatory burdens that make it easier to invest somewhere else.”
The lawmakers pointed to companies including Exxon, Honeywell, Maserati North America and Gerber Products Company as examples of major employers that have relocated headquarters operations or reduced their footprint in New Jersey in recent years.
They also cited Anheuser-Busch’s plans connected to the closure and sale of its Newark brewery, as well as other reductions in the pharmaceutical, retail and manufacturing sectors.
“Fortune 500 companies are leaving, major employers are pulling back, and working families are left paying the price,” DePhillips said. “Workers and taxpayers are being forced to shoulder higher taxes while employment opportunities decline to support an ever-growing government.”
The lawmakers also referenced recent reporting from the New Jersey Business & Industry Association, which found that 59% of surveyed businesses had no plans to expand in New Jersey. The association also reported that 87% of employers said business affordability in New Jersey had worsened over the past five years.
“New Jersey families and employers are already stretched thin by the cost of living,” said Rumpf. ““They deserve a hearing that tells the truth straight from the companies that were forced to leave because New Jersey is too expensive despite its optimal workforce and location.”
DePhillips and Rumpf said the hearing would allow lawmakers to examine the state’s tax structure, energy costs and regulatory climate while considering policies aimed at retaining employers and jobs.
