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Taxes, the TTF and Mandates Dominate the Conversation at the First NJ Business & Economic Roundtable

By Ralph Albert Thomas, CPA (DC), CGMA posted 06-16-2015 04:23 PM

  

Uncertainty. Frustration. Cautious optimism.

Those were some of the sentiments expressed by a panel of thought leaders from business groups, government, academia and the media at the NJCPA’s first NJ Business & Economic Roundtable. The panel, brought together last Friday at the 10th annual NJCPA Convention & Expo in Atlantic City, was moderated by New Jersey politics and media veteran Jim McQueeny. The roundtable included:

Michele Siekerka kicked off the discussion with a plea to policymakers to bring an end to mandates that she believes are unnecessary and burdensome for NJ businesses. Tom Bracken echoed that sentiment and recommended that the state hold a series of hearings to ask small businesses what they need. “There are 300,000 small and medium-size businesses in NJ and we’re doing nothing for them,” said Bracken.

He added that the uncertainty felt by NJ businesses is one of the primary reasons that NJ has the fourth lowest growth rate of any state in the country and lags well behind other northeastern states. According to Dr. Shojai, NJ is one percent above the national unemployment rate and one percent below the national growth rate.

The discussion quickly turned to two familiar and contentious issues: the Transportation Trust Fund (TTF) and taxes. Although, according to Dr. Shojai, 66 percent of NJ roads are in “bad shape”, Senator Oroho doesn’t believe that a gas tax increase that would save the TTF from bankruptcy will be included in the upcoming state budget. He added that the only hope of passing a gas tax increase is as part of a compromise package that includes estate tax reform.

Dr. Shojai believes that Governor Christie’s presidential ambitions are holding back a compromise. “If the governor wasn’t thinking of running for President, he’d be more pragmatic and would probably agree to a gas tax increase.”

While the panel was circumspect about whether the governor’s presidential aspirations are a distraction, a recent public opinion poll was more certain. According to a survey shared by McQueeny, 55 percent of NJ residents believe that the governor is more concerned about running for President than running the state, and 32 percent believe that the governor’s campaign is hurting NJ.

Oroho, Siekerka and Bracken were in agreement on their opposition to the millionaire’s tax and NJ’s estate and inheritance taxes. According to Senator Oroho, NJ lost more than 70 billion in capital between 2004 and 2008 because of the state’s onerous tax policies.

Reforming NJ’s estate and inheritance taxes is a key component of NJBIA’s legislative agenda, said Siekerka, along with developing a long-term solution to the fix the TTF and cutting back or eliminating new mandates such as paid sick leave.

“The business community is cautiously optimistic because we’re coming off of two years of strong earnings,” said Siekerka. “But businesses are cautious because they need more regulatory and political certainty.”

The business and economic roundtable supports the “one voice” initiative, a joint effort of the NJCPA, NJBIA, Chamber, Commerce & Industry Association and other business groups to pool resources and maximize our collective influence to advance key issues and public policy outcomes in Trenton.

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