New Jersey has among the highest individual income taxAn individual income tax (or personal income tax) is levied on the wages, salaries, investments, or other forms of income an individual or household earns. The U.S. imposes a progressive income tax where rates increase with income. The Federal Income Tax was established in 1913 with the ratification of the 16th Amendment. Though barely 100 years old, individual income taxes are the largest source of tax revenue in the U.S. and property taxA property tax is primarily levied on immovable property like land and buildings, as well as on tangible personal property that is movable, like vehicles and equipment. Property taxes are the single largest source of state and local revenue in the U.S. and help fund schools, roads, police, and other services. burdens in the country. With November’s gubernatorial stage set, the candidates now must articulate their vision for greater economic competitiveness.
On TaxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. Foundation’s State Tax Competitiveness Index, New Jersey’s tax code ranks 49th, only ahead of New York. Beating the Empire State may bring bragging rights, but second worst in the country is hardly a win for Jersey families.
In recent decades, the state has become synonymous with failed fiscal policies that have led many lifelong residents to leave the state, taking their wealth and investments with them, and making New Jersey a net out-migration state.
This is a preview of our full op-ed originally published in Northjersey.com.