New Jersey Citizen Action urges major reforms for any future corporate tax incentive programs
Highland Park — New Jersey Citizen Action released this statement today following the final report released by Governor Murphy’s Tax force on the New Jersey Economic Development Authority’s corporate tax subsidy programs, which had been allowed to expire last year following well-documented allegations of corruption, mismanagement and ineffectiveness.
“The final report confirms what has been evident for more than a year, that the EDA’s corporate tax subsidy programs cannot be revived without meaningful reforms, especially hard caps on incentives,” said Dena Mottola-Jaborska, Associate Director of New Jersey Citizen Action. “We agree wholeheartedly with the report’s findings that an uncapped program severely impacts the state budget, and does not encourage the best, most efficient use of an important public asset—New Jersey’s tax credits. We also agree with the report’s recommendations on the need for major reforms when it comes to how applications are scrutinized, awarded and tracked, as well as the need for an independent body to consistently review the EDA’s corporate tax incentive activities.
“We echo Governor Murphy’s call for meaningful reforms and urge the State Legislature not to consider any proposals to revive the EDA’s programs without these reforms in place. There is plenty of evidence to suggest companies will do business or stay in New Jersey without massive corporate tax breaks. New Jersey would be better off with no corporate tax subsidy programs if legislators are unwilling to push through reforms. Our public funds could be better invested in fundamentals all businesses can benefit from, such as transportation, infrastructure and a healthy, well-educated workforce.”
New Jersey Citizen Action is a statewide advocacy and social service organization that fights for social, racial and economic justice for all while also meeting the pressing needs of low and moderate income New Jerseyans through education and direct service.