New Jersey CPAs Cite Sweeney Group’s Small Business, Property Tax and S Corp Recommendations as Good for NJ Economy
ROSELAND, N.J. – More than 300 certified public accountants (CPAs) polled last month by the New Jersey Society of CPAs (NJCPA) said the three tax recommendations from Senate President Stephen Sweeney’s Economic and Fiscal Policy Workgroup that would have the most positive impact on New Jersey’s economy are helping small businesses; providing property tax relief; and enabling S corporations or other partnerships to be taxed more equitably.
The Economic and Fiscal Policy Workgroup, which was created by Senate President Sweeney and is co-chaired by Sen. Paul Sarlo, Sen. Steven Oroho and Assemblyman Louis Greenwald, issued its “Path to Progress” report in August to identify ways to improve the state’s economic growth and competitiveness. The Path to Progress report focused on five areas of reform, which included pension and benefit reform; education reform at the administrative level; county and municipal government reform and shared services; state and local government tax structure; and leveraging assets to stabilize the pension system.
In the state and local government tax structure section, the report included eight recommendations. The three that NJCPA survey respondents felt would have the greatest economic impact were:
- Focus additional tax incentives towards small businesses to support more entrepreneurs
- Revise New Jersey’s property tax relief programs to provide relief more equitably
- Enable S corporations, LLCs and partnerships to pay state taxes equivalent to the gross income tax obligations of their owners and partners, which effectively would make state tax payments deductible on their federal taxes.
Survey respondents also supported the Workgroup’s recommendations to split revenue among municipalities, school districts and counties; undertake a comprehensive analysis of the state’s sales tax exemptions; and establish a permanent Economic and Fiscal Policy Review Committee made up of economists, academics and tax experts.
“The survey is a telling sign that the Policy Workgroup is zeroing in on some of the most pressing issues that need to be fixed to get our state back on track for growth and prosperity,” said Ralph Albert Thomas, CPA (DC), CGMA, CEO and executive director, who sits on the 25-member Workgroup along with other non-legislative members. “CPAs have a unique perspective given what they hear from those in the business community, their clients, and vendors or suppliers that they do business with all over the state.”
The full Path to Progress report is available at pathtoprogressnj.org.
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The New Jersey Society of Certified Public Accountants, with more than 15,000 members, represents the interests of the accounting profession and advances the financial well-being of the people of New Jersey. The NJCPA plays a leadership role in supporting the profession by providing members with educational resources, access to shared knowledge and a continuing effort to create and expand professional opportunities.