Gov. Christie Transition Team Outlines Tax Goals
Governor Christie’s Transiton Team released a series of subcommittee reports regarding tax goals. The report of the Subcommittee on Economic Development & Job Growth offered a number of state tax-related recommendations.
Institutionalize tax restraint
Require super-majority legislative approval to enact any new or increased taxes and support a constitutional amendment to institutionalize this discipline for the future.
Annual Tax Policy Impact Report
Annnually issue a detailed study of tax return data assessing the actual impacts of tax policy on out-migration, business formation and employment in New Jersey.
Eliminate the “investment and employment tax”
Enact “single sales factor” reform to level the tax playing field for New Jersey based and out-of-state companies doing business here with consideration of a multi-year phase in of the reform.
Allow “temporary” taxes to expire
Allow the temporary income tax and corporate tax surcharges to expire.
End “double tax” on S-Corporations
Eliminate the corporate minimum filing fee/tax ($500 to $2,000 annually based on receipts) on S-Corporation owners.
Make small business tax policy an engine for economic growth
Enact many of the business incentives found in our corporate tax law for small businesses which pay business taxes via the owner’s/partner’s personal income:
Allow a 20 year loss carry-forward of business income net operating losses into future tax years;
Permit small businesses to bundle different forms of income and losses, such that profits in one business are taxed even if losses are sustained in another; and
Establish a flat business income tax rate, similar to the corporate tax that encourages entrepreneurship.
Repeal State Estate Tax
Repeal the New Jersey Estate Tax, the newest of the State’s two death taxes, which taxes estate over $675,000 at tax rates as high as 16%.
Repeal redundant administrative tax policies
Eliminate the cumbersome UEZ rebate regulations that require UEZ -based businesses to pay sales tax and then apply for a tax rebate on formerly tax exempt purchases, saving both the Division of Taxation and businesses significant resources needed to administer the program.
Consider temporary employer payroll tax relief
Lobby our federal congressional delegation to secure Federal UI fund assistance, as was received in 2009, to reduce looming payroll tax hike and consider giving a temporary rebate of a portion of employee income taxes paid by workers below a certain wage.
New manufacturing investment business tax credit
Create new 20 percent manufacturing investment business tax credit to compete with surrounding states.
Enhance film and digital media tax credit
Expand NJ’s tax credit caps to $50 million (film) and $10 million (digital media) will maximize our ability to capture more projects in the expanding entertainment market.
Higher Education Partnerhip Credits
Use business tax credits to incent higher education partnerships
High Tech Investor credits
Provide “Angel” investors tax credits for investments in New Jersey high tech start-ups.