Stop residents from fleeing New Jersey by cutting corporate tax, Assemblyman DePhillips says
NEW JERSEY – Assemblyman Christopher DePhillips has long argued that New Jersey’s nation-high corporate tax rate contributes to outmigration.
The latest figures from the U.S. Census Bureau support his point – residents are leaving New Jersey to live in states with lower taxes like Florida, Texas and South Carolina, DePhillips says.
“New Jersey’s outmigration of residents is the fourth highest in the nation. These numbers confirm the state is completely unaffordable. The extra revenue from high taxes is clearly not worth the fallout,” DePhillips (R-Bergen) said.
An estimated 64,231 residents moved out of New Jersey between July 1, 2021 and July 1, 2022. When including the number of people moving into the state, New Jersey had a net migration loss of 24,843. The northern part of the state experienced the greatest population loss. Essex, Passaic and Bergen counties combined to lose nearly 11,000 residents in 2022, adding to the population losses they had the prior year, DePhillips said.
“I do not think it is just a coincidence that North Carolina has the lowest-in-the nation corporate tax rate and is also among the top states to gain the most number of new residents,” DePhillips said. “It is imperative that we cut our corporate business tax and not simply let the surcharge statutorily sunset.”
DePhillips sponsors a bill (A1146) to gradually lower the New Jersey corporate business tax to 2.5% in four years – matching North Carolina’s rate. The rate for businesses making less than $100,000 would be reduced from 7% to 2.5% in just two years.
“Regular, hardworking New Jersey families are being pushed out,” DePhillips said. “I can’t be the only person to read bad report after bad report and say, ‘We have to do something.’ So, I am echoing my calls to Legislative leadership to post my bill for consideration, so we can improve our economy and keep businesses, jobs and families in New Jersey.”
The last two legislation sessions, DePhillips has introduced the bill lowering New Jersey’s current highest-in-the-nation corporate tax rate of 11.5%. New Jersey’s business tax is set to become 9% after a 2.5% surcharge on revenue over $1 million expires at the end of the calendar year. Nine-percent would be the fourth-highest rate in the nation.
“The best way to stem outbound migration is to promote a vibrant economy with permanent tax cuts, not more government spending and gimmicks,” DePhillips said.
DePhillips’ legislation is awaiting a hearing in the Assembly Commerce and Economic Development Committee.
