by Rudy Takala
The small business climate in New Jersey is suffocating under burdensome regulations and high taxes, according to a recently released study. The study, conducted by the Kauffman Foundation and the website Thumbtack, gave the state’s business environment a grade of D.
The research examined state business climates by looking at a combination of tax rates, regulatory environment, and licensure requirements for low-income occupations. New Jersey, Pennsylvania and Connecticut tied on the analysis, each received an overall grade of D. Two states – Virginia and Texas – received the top grade of A+.
New Jersey presently has an unemployment rate of 6.8 percent compared to rates of 5.1 percent in both Texas and Virginia.
The study serves to remind New Jersey residents that Trenton’s trickle-down tax hikes and oppressive regulations are not the national norm. Undaunted, Democrats in Trenton last month proposed a budget containing $1.6 billion in tax hikes that was vetoed by Gov. Christie. The budget included an income tax hike, a corporate business tax hike, and 23 separate fee increases. Study Finds NJ Business Climate Suffering
Americans for Prosperity has previously called on legislators in Trenton to shut off the state’s corporate welfare spigot – including any direct subsidies, tax breaks, and taxpayer-funded loans – and to decrease the state budget by five percent as a means to fostering greater economic growth.
The study substantiates that new laws and higher taxes are not what New Jersey needs. The state’s economic growth is lagging behind its counterparts nationally. Unfortunately, legislators in Trenton refuse to acknowledge their role in the problem.