Research Organization Foundation (NJPRO). Nearly 300 NJBIA members and State VIPs attended the event.
In his keynote address, Corzine said he was committed to changing the business climate in New Jersey. In his first year in office, he fully restored net operating loss tax deductions, eliminated the alternative minimum assessment, and reduced tax rates for S corporations. His Economic Growth Strategy, unveiled in September, seeks to make it easier to do business in New Jersey. At the same time, the Governor acknowledges that New Jersey must improve its business climate.
But Corzine made it clear that in his view New Jersey is a great place to do business, with access to the world’s most lucrative consumer market and home to the smartest workforce and the most entrepreneurial people in the world.
“There is a reason we have the highest median income in the country,” Corzine said. “We ought to be selling ourselves as a place to do business.”
Corzine said his Administration is committed to building on New Jersey’s core assets by accelerating the regulatory approval process. He said the State is establishing partnerships like the Edison Fund to invest in high-tech and bio-tech companies, and the Urban Fund, focusing on small businesses and urban areas. He also said that New Jersey should be a bigger export State. He pledged to expand local economic opportunities in Asia and South Asia.
“We ought to be the home base for international business,” he said.
During the morning program, Menendez, in his first major policy address since the November election, said the new Democrat-controlled Congress would be more open and work in a more bipartisan fashion.
“We have already seen examples in the waning days of this past Congress of how a much more bipartisan voice at the table can make a positive difference,” he said. The new Congress recently passed a tax bill extending numerous popular tax deductions and credits that had previously “been held hostage to other political priorities.” These include a research-and-development tax credit and a tax deduction for more energy efficient buildings.
The legislative leaders panel, moderated by 101.5 Radio Correspondent Kevin McArdle, focused on the prospects of property tax reform. Assembly Speaker Joe Roberts said some issues, such as revamping the school funding formula and capping property tax bills, will be resolved in January or February, but by the end of December the Assembly had passed many of the property tax recommendations issued by the four joint legislative committees. He singled out one of the reforms, which gives county school superintendents responsibility for pupil transportation.
“That’s one example of something that I think will result in real change, and hopefully result in real savings for the business community as well,” Roberts said.
His counterpart, Assembly Republican Leader Alex DeCroce, countered that the plans did not go far enough, considering that not all homeowners would be eligible for a proposed 20 percent tax deduction in property tax bills. “I don’t think there’s anything in this process that’s going to help the business community,” DeCroce said.
Senate Majority Leader Bernard Kenny disputed the notion that the 20 percent tax credit for certain homeowners would not benefit business. Providing such a benefit to the middle class would increase their purchasing power and improve the economy.
“To just write that off as being of no use to the business community is a fallacy,” Kenny said. He added that the committees recommended not eliminating the uniformity or fairness clause and not authorizing local sales taxes, which would have hurt business the most.
Senate Republican Leader Leonard Lance, meanwhile, said he was disappointed the Governor had taken many public employee health and pension benefit issues off the table so he can negotiate them with the unions, including some that are in law and the Legislature had authorized. “It is our position that if the Legislature has granted certain pension benefits, the Legislature should be able at the very least to review them.”
The Forum also featured two concurrent panel discussions. The political outlook panel featured State Democratic Party Chair Joe Cryan, Republican State Party Chair Tom Wilson, Rider University Political Science Professor David Rebovich, and Politifax Publisher Nick Acocella. The other panel on the State economic outlook featured Steve Kalafer, chairman of Flemington Car and Truck Country; Rae Rosen, senior economist with the Federal Reserve Bank of New York; and Dan Levine of ADP (Mintax) Inc.
Kalafer illustrated the importance to the economy of pension and benefits reform for public workers by saying, “If I gave those benefits to my 1,400 employees, I would be operating at a significant loss, and within three years, 30 years worth of my retained earnings would be dissipated.”
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