Gov. Murphy on Tax Incentives Reform and ‘Tax Fairness’

By George N. Saliba, Managing Editor On Mar 1, 2019

WASHINGTON, D.C. – Gov. Phil Murphy last night spoke before a large audience of both key New Jersey lawmakers and business leaders at the Marriott Wardman Park Hotel, declaring that his state budget address scheduled for Tuesday would reveal continuing investments in education, infrastructure, workforce development and communities.

Gov. Murphy also said he “will speak once again to my commitment to tax fairness for our middle-class families and seniors…”

Although the governor did not explicitly say so, for many, “tax fairness” has been, in part, a code word for raising taxes on affluent New Jerseyans via a so-called millionaires tax – something the business community and others have adamantly opposed, claiming it would only further fuel an ongoing exodus of high income/high tax paying residents and business owners from the state.

Meanwhile, Gov. Murphy spoke again about his opposition to the way tax incentives had been used for economic development in New Jersey, claiming, “When we lose $1 billion in revenues due to tax breaks, as we are this upcoming fiscal year, we lose $1 billion to invest in education and workforce development, in community redevelopment, and NJ TRANSIT and infrastructure.”

In October, a new framework for what the governor called “capped and strategically focused incentives” was showcased, and Gov. Murphy asserted last night that such incentives “would grow the businesses we need for our future, and in the places where investment would have an outsized impact.”

The business community has recently been at odds with Gov. Murphy regarding passed $15 minimum wage legislation, for example. That said, the governor’s remarks did include a commitment to obtaining federal funding for the Gateway program, which would increase transit capacity between New Jersey and New York, and which has largely been supported across party lines in the region.

Whether or not business leaders agree with Gov. Murphy, he claimed, “I am proudly both progressive and pro-growth. This, to me, isn’t a zero-sum game. In fact, it is the ultimate ‘1+1=3.’ I want to be your partner not just in growing our economy, but also in protecting the things that make New Jersey a great home for the innovative businesses that are going to fuel our future and help us to reclaim the mantle of economic leadership we once so proudly held.”

Gov. Murphy’s speech was part of the New Jersey Chamber of Commerce’s 82nd annual “Walk to Washington,” a 14-car Amtrak train which ferries business and government leaders from New Jersey to Washington, D.C. for professional networking purposes.

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