More than 75 percent of certified public accountants (CPAs) believe New Jersey’s 2019 state budget will affect the economy negatively; they were responding to a survey by the New Jersey Society of CPAs (NJCPA). The pessimists were about evenly split among those who think the economy will get “significantly worse” (37 percent) and those who are of the opinion it will get “marginally worse” (39 percent). Fourteen percent contend the budget won’t impact the economy either way, and there’s an outlier group of optimists (10 percent) that predict the Garden State economy’s going to get either “marginally better” or even “significantly better” under the new budget.
But, why the preponderantly gloomy outlook? For one, the budget’s millionaires tax: According to one respondent, this tax will fuel “…the outward migration of wealth… and the long-term effect will be disastrous.” Another reason cited: The budget’s tax increases on corporations won’t help the job market, will be a disincentive for businesses to remain in the state, and will make the state less friendly to investors and businesses.