In Governor Murphy’s first State of the State address on Jan. 15, he spoke about fostering the new economy of New Jersey — a key objective of New Jersey Society of Certified Public Accountants (NJCPA). Only with a strong business climate and satisfied residents will New Jersey be a viable place to live and do business.

The NJCPA supports much of what Governor Murphy said, including when he noted, “I am working every day to support companies and start-ups that want to grow, create jobs and thrive in New Jersey.” His decision to evaluate and correct the state’s tax incentives program for corporations is also encouraging. Done correctly, tax incentives can assist many small, midsize and large companies and encourage their decision to remain in the state.

We are closely following Governor Murphy’s efforts to legalize adult-use marijuana. While the NJCPA hasn’t taken an official position, if the state legalizes the possession and personal use of marijuana, it will certainly become a major industry. More than 48 percent of the 1,058 CPAs who were polled earlier this month by the NJCPA believe that legalizing marijuana in New Jersey will help the state’s economy. An efficient regulatory and tax structure is essential if this industry is to prosper.

On the issue of the minimum wage hike, the NJCPA parts ways with Governor Murphy’s proposals. Governor Murphy suggests that a $15 minimum wage is needed in the state, but the NJCPA and its members see more of a gradual shift to a $15 minimum wage as being more beneficial to New Jersey’s economy. In a December survey, more than 55 percent of the 1,204 NJCPA members surveyed supported raising the minimum wage, but if it were raised to $15 an hour — even over a period of years — 63 percent of those surveyed said it would hurt the state’s economy, explaining it will have an inflationary impact causing ripple effects that will hurt consumers.

The NJCPA also continues to back Governor Murphy’s commitment to promote the use of shared services for local governments.

And while Governor Murphy said there is “more income tax fairness and more property tax relief for working families” compared to a year ago, the NJCPA and its members and their clients still see a lot of work to be done in this area. Hikes in business taxes, like the corporation business tax hike passed last June, only serve to dampen economic growth and lead to job losses. But we commend Governor Murphy’s commitment to work with the state’s federal delegation to reinstate the State and Local Tax (SALT) deduction.