Nearly 75 percent of the 786 CPAs who responded to a recent survey from the New Jersey Society of CPAs (NJCPA) said New Jersey’s economy would get either “significantly worse” (31 percent) or “marginally worse” (44 percent) over the long term under Gov. Phil Murphy’s proposed budget plan. Only 14 percent said it would end up better.
Respondents mostly blamed high taxes on corporations and individuals as a reason for the negative sentiment, which they said could eventually lead to more unemployment and an exodus of businesses and individuals from the state.
Overall almost 55 percent of the respondents rated the state’s current economy “fair,” compared with 28 percent who said it is “good,” and 17 percent who said it’s “poor.” Only 1 percent rated the current economy as “excellent.”
Actions that would get the economy on the right track: less regulation, lower marginal tax rates, repealing mandatory sick leave legislation, decoupling school-funding formula from property taxes, streamlining the police forces in the state, and converting pension plans to 401(k) retirement accounts.