Given North Carolina’s major tax reforms expected to be passed today, Senate Republican Leader Tom Kean Jr. and Senate Budget & Appropriations Committee member Steven Oroho urged Trenton Democrats to move in a bipartisan fashion to adopt overdue tax cuts and restructuring measures for the people of New Jersey.
On Monday, North Carolina’s Republican governor announced an agreement with that state’s legislature on sweeping tax reforms that will position the Tar Heel State to grab even more jobs and families from the Garden State. North Carolina’s “Tax Simplification and Reduction Act” is expected to be advanced to Gov. Pat McCrory today by that state’s General Assembly.
“Tax cuts and rate overhauls authored by state leaders in North Carolina mirror proposals created by Senate Republicans and Gov. Chris Christie to make New Jersey more affordable for families and attractive to job creators,” said Kean (R-Union, Somerset, Morris). “If Senate Democrats continue to block tax cuts and legislation sponsored by Republicans and Democrats, then New Jersey can expect to endure a continuation of outmigration that is splitting up families and chasing innovators away to our competition states, namely North Carolina, which has significantly lower business and personal tax rates.”
Senator Kean noted that in each of the past two years, N.J. Senate President Stephen Sweeney has back-tracked away from his own compromise on a Republican tax cut for middle-class families. Kean pointed out how Sweeney has also blocked Senate Republican and bipartisan legislation to address this state’s nation-high property taxes at their root, by eliminating sick-leave jackpots for retiring public officials; closing property tax cap loopholes; enacting real pay-to-play reforms; and doing everything possible to foster shared services and consolidation at local levels.
In addition, Senate Democrats have preserved New Jersey as one of two states with two forms of a “death tax,” while North Carolina is moving to immediately eliminate any form of an estate tax. Senator Oroho’s S239, which is bipartisan legislation, would phase out New Jersey’s estate tax over five years. Senator Oroho’s S1996, also bipartisan legislation, would eliminate New Jersey’s inheritance tax and raise the threshold of the estate tax from $675,000 to match the federal level. With North Carolina ending their “death tax,” just 16 states will have one.
“New Jersey’s two death taxes are a prime example of how tax and spend governance has set up this state to take money out of both of your pockets — even once you’re dead,” said Oroho (R-Sussex, Warren, Morris). “On the other hand, legislators in North Carolina are acting on conservative tax reforms that will attract job creators and put more money in their residents’ pockets. Everyone in Trenton can agree that North Carolina has benefited greatly from New Jersey being vastly unaffordable compared to competitor states. I’m urging my colleagues here in the Senate and Assembly to help us turn the tables. As we did on comprehensive business tax reforms, we must work together to make our communities where businesses and families want to live and grow.”