Senator Says Corporate Tax Breaks Failed to Create Jobs; Demands Action to Combat “Crony Capitalism”

Senator Mike Doherty (R-23) is calling for legislative action following the release of a report by the State Comptroller that proved that the New Jersey Economic Development Authority (EDA) has failed to ensure companies that received corporate tax subsidies were using those funds to create jobs.

“While millions of New Jersey residents were struggling to cope with the highest property taxes in the country, the State was handing out millions in tax breaks, and getting little in return,” Senator Doherty said. “As far as I’m concerned, any company that claimed tax breaks and failed to keep their promise to use that money to create jobs has committed tax fraud. The lack of oversight at the EDA is appalling. I am exploring all legislative options to ensure every subsidy that was wasted in this corporate welfare scheme is returned to our taxpayers.”

The comptroller audit released on Jan. 9, 2019, showed that New Jersey companies that were given tax incentives to create in-state jobs sometimes failed to do so. The report also revealed that there is insufficient oversight of the tax incentive programs managed by the EDA.

“Our state’s egregious corporate tax breaks continue to have a mediocre return on investment,” Doherty added. “Instead of picking winners or losers, let’s focus on cutting taxes for everyone, so businesses and homeowners alike can afford to stay in New Jersey. As a good steward of taxpayer dollars, I will not rest until all misused corporate subsidies are recaptured.”