Taxes, the Economy, and Outmigration

The NJEA’s political dominance has had negative effects on the state’s economy.  At the local level, the NJEA has used its virtual political monopoly and collective bargaining powers to drive ever-higher education spending, resulting in New Jersey’s highest-in-the-nation property taxes.  When property taxpayers revolted, the NJEA then successfully pushed for state-level sales and income taxes, and has been behind every state tax increase since.  The result is that New Jersey has the worst tax system for businesses in the nation.  Consequently, New Jersey’s economy has underperformed both the nation and its neighboring states with whom it competes for businesses and jobs.  Ominously, New Jersey’s high cost of living and underperforming economy have led to one of the largest out-migrations of citizens and wealth in America, putting additional pressure on state budgets.  This downward economic spiral threatens the future of the state.

Taxes, the Economy, and Outmigration

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Research Report

Issue 7: taxes, the economy, and outmigration

Beware The Downward Spiral: The Economic Consequences Of New Jersey’s Special-Interest-Dominated Status Quo

“If I were relocating to some state that had a huge unfunded [public sector] pension plan I’m walking into liabilities. I say to myself, ‘Why do I want to build a plant there that has to sit there for 30 or 40 years?’ Because I’ll be here for the life of the pension plan, and they will come after corporations, they’ll come after individuals … they’re going to have to raise a lot of money.”

– Warren Buffet, 2019. 1

If Warren Buffet is asking this question, then American businesses are asking this question.

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