More Government, Less Wealth
During the first decade of the new millennium, New Jersey witnessed an exponential growth of state government. Our income tax and sales tax increased, while property taxes from 2000-2010 nearly doubled. State spending also skyrocketed during that time, going from just over $20B in FY 2000 to a peak of nearly $33B in FY 2009 (only to come down to about $29B in the year following the Great Recession).
The result was a lost decade where New Jersey actually lost jobs and an exodus of people and wealth ensued. As the Tax Foundation’s map details below, New Jersey lost $15.7B in wealth from earners who fled the state from 2000-2010, the 4th highest loss of wealth of any state in the nation. The only states worse off than New Jersey, not surprisingly, are other states with high taxes and burdensome government: New York, California and Illinois.