The big news in a recent report was hardly news to anyone who owns a house in New Jersey or operates a business here: "Report: New Jersey residents pay highest taxes."

For a third consecutive year, the Tax Foundation found that New Jersey taxpayers carry the nation's heaviest burden when it comes to state and local taxes.

High taxes are a major problem. But what really worries businesses in this state is a pattern of high taxes and fees, unreasonable regulations and heavy-handed government actions that are making New Jersey an increasingly difficult place in which to operate a business and create jobs.
What we need today are state government leaders who are more passionate about removing barriers to economic growth than erecting them.
A growing body of evidence suggests that high costs like taxes are driving people, businesses and jobs out of this state. A Rutgers University study ("Where Have All the Dollars Gone?") finds that people are already leaving New Jersey in large numbers for lower-cost states like Pennsylvania, threatening our population growth. Indeed, New Jersey has fallen from the eighth most populous state to the 11th since the 1990s.

Like the public, businesses are leaving New Jersey for better opportunities elsewhere. This can be seen in the state's dismal employment growth record, which tells us that businesses are no longer creating jobs here like they used to.

Ironically, while the Legislature was making the paid family leave mandate a top priority in the first half of this year -- a measure hugely unpopular with employers -- New Jersey lost more than 14,000 private-sector jobs. We now have fewer private-sector jobs in this state than we did 7 1/2 years ago.
In the 1980s and 1990s, when New Jersey was creating 60,000 to 100,000 jobs a year, we were an economic powerhouse. Today, we rank near the bottom of the states in our rate of job creation. (A Rutgers study found New Jersey was 41st in the nation in its rate of private-sector employment growth in 2006 and 2007.)

New Jersey also fares poorly in most state and national business- climate surveys, which cite high costs, excessive regulation and an anti-business attitude as reasons New Jersey isn't popular with companies looking for expansion sites.

Fortunately, there are steps New Jersey can take to strengthen its business climate. Here are some good ideas:

Reform taxes. Does it make sense that New Jersey tax law penalizes businesses that hire workers and build facilities here? It certainly doesn't. Let's overhaul the corporation business tax so that it no longer gives a break to out-of- state companies that merely sell goods and services in New Jersey while more heavily taxing businesses that have operations here.

Reduce energy costs. The state must reduce energy costs, not raise them. Under New Jersey's energy master plan, a whopping 20 percent of a company's total electric bill would go toward government taxes and surcharges. This is not acceptable.

Impose a moratorium on new regulations. The state should impose a moratorium on the issuance of new rules by the Department of Environmental Protection. Excessive regulations are a costly but hidden tax on the state's businesses. The DEP last year issued 2,000 pages of new regulations, including one that requires the owners of tidal waterfront property -- even chemical plants -- to provide public "beach" access.

Support manufacturing. It pays to support a sector of the economy that pays above-average wages and benefits and supports half a million jobs. Let's start with a 20 percent tax credit for manufacturers that invest in new equipment and facilities.

Establish one-stop-shopping. Other states make it easy for businesses to set up shop with "one- stop-shopping" that gives them a single point of access for all state permits and programs. New Jersey should do the same.

Stop the mandates. It's time to stop the mandates. In May, New Jersey became the second state in to require paid family leave for all employees. The six week paid-leave program was strongly opposed by business. Mandates like this will only drive more employers -- and jobs -- out of this state.

It's time New Jersey embraced business as its economic partner, as other states have done. We have the potential to become, once again, an economic growth leader among the states. Let's do it!