Residents across New Jersey, from Trenton to the Jersey Shore, are increasingly voicing concerns over the state’s escalating property taxes and deteriorating economic conditions. During a recent appearance on The Hugh Hewitt Show, Jonathan Williams, President and Chief Economist at the American Legislative Exchange Council (ALEC), offered a critical assessment of New Jersey’s fiscal policies and their long-term consequences. n nWilliams described widespread frustration among residents, noting that the state ranks 48th in economic outlook according to ALEC’s latest Rich States, Poor States report. He attributed this low ranking to some of the nation’s highest tax rates and burdensome regulatory frameworks. Under Governor Phil Murphy’s administration, Williams argued, New Jersey has intensified its reliance on high taxation and increased public spending—even during periods like the pandemic when fiscal restraint might have been expected. n nHe pointed out that the governor’s vision of transforming New Jersey into a so-called ‘California East’ has contributed to a significant population decline. Over the past decade, the state has lost more than 500,000 residents net, a trend Williams links directly to the prevailing tax-and-spend model. n nThe financial strain on households is evident in the state’s tax structure. New Jersey’s top marginal personal income tax rate stands at 11.75%, the 47th highest in the U.S., while its corporate income tax rate of 9% ranks 43rd nationally. Additionally, the property tax burden is the 48th highest across states, placing immense pressure on homeowners. n nWilliams also reflected on the state’s historical shift from fiscal prudence to current challenges. In the 1960s, New Jersey operated without an income or sales tax, resembling today’s low-tax states like New Hampshire. However, the introduction of these taxes was not accompanied by efforts to curb excessive municipal spending, leading to a cycle of rising levies and diminishing returns for taxpayers. n nDespite these issues, Williams emphasized that New Jersey still holds potential for reform. He suggested that the state’s struggles serve as a warning for other regions considering similar policy paths, while also highlighting opportunities for meaningful turnaround through structural changes. n— news from American Legislative Exchange Council
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New Jersey’s Economic Woes and Property Tax Issues: Jonathan Williams on The Hugh Hewitt Show – American Legislative Exchange Council
Whether you’re in Trenton, Newark, or along the Jersey Shore, it’s hard to turn on the news without hearing about New Jersey’s property taxes. The questions are the same everywhere—how high will rates climb, what does it mean for families, and why are residents leaving in droves? n nThat was the backdrop when Hugh Hewitt spoke with ALEC President and Chief Economist Jonathan Williams last week about the Garden State’s tax burdens, energy costs, and economic outlook. n nThe conversation began with a broad overview of New Jersey’s economic landscape. n n“Being up there yesterday, I can tell you, people are fed up with New Jersey and the way that they’re going,” Williams said. “Right when you look at their rank, number 48 in economic outlook in our latest Rich States, Poor States report—some of the highest taxes, some of the most egregious regulations, worst policies across the board, and under Governor Phil Murphy, they’ve doubled down on the failure. They’ve raised taxes, they’ve raised spending, even during the pandemic.” n nWilliams highlighted New Jersey’s trajectory compared with other states. n n“You actually have a governor, who says he wanted to become California East. Think about that for a second. So should we be surprised when New Jersey now has lost more than 500,000 residents on net over the last 10 years because of this tax and spend formula?” n nWilliams then noted New Jersey’s heavy property tax burden and high income tax rates. n n“If you’re there and you can’t avoid property taxes, and I got the stats you sent me, their top marginal personal income tax rate is 11.75%, 47th in the nation. Their top marginal corporate income tax rate is 9%, which is 43rd in the nation, and their property tax burden is 48th in the nation.” n nReflecting on the state’s history, Williams traced the roots of today’s challenges. n n“It wasn’t that many decades ago, and New Jersey was a very prosperous place. In fact, you go back to the 1960s, New Jersey didn’t have an income tax or a sales tax. They were New Hampshire in the 1960s, and to deal with property taxes, they adopted income taxes and sales taxes, but the thing they forgot to do here… is they forgot to stop the overspending by cities and counties that just have a new need for every last taxpayer dollar that’s out there.” n nFor New Jerseyans facing rising costs, Williams’ assessment was clear: “It’s a cautionary tale for the rest of America, but they’ve got some great ideas to turn the state around.”