(The Center Square) – New Jersey ranked at the bottom of the Tax Foundation’s 2022 State Business Tax Climate Index.
The Garden State ranked 48th for both corporate taxes and individual taxes. It also ranked 43rd for sales tax, 44th for property taxes and 32nd for unemployment insurance taxes.
New Jersey “is hampered by some of the highest property tax burdens in the country,” the Tax Foundation said in its analysis. It also “has the second highest-rate corporate and individual income taxes in the country and a particularly aggressive treatment of international income, levies an inheritance tax, and maintains some of the nation’s worst-structured individual income taxes.”
In the region, New York ranked No. 49, while Connecticut ranked No. 47, Pennsylvania ranked No. 29 and Delaware No. 16. Nationally, Wyoming topped the list, followed by South Dakota and Alaska.
“As we continue the conversation about the great need to make New Jersey more affordable, the annual Tax Foundation report shows just how much of an outlier we are in the nation when it comes to taxes,” Michele Siekerka, president and CEO of the New Jersey Business & Industry Association (NJBIA) told The Center Square.
“Unfortunately, absent a real commitment to address our affordability challenges by our policymakers, New Jersey will continue to struggle to compete and will only maintain and enhance its reputation of not being business friendly,” Siekerka added.
(The Center Square) – New Jersey’s nonfarm wage and salary employment increased by 25,800 in November, marking the eleventh straight month of gains.
Additionally, the state’s unemployment rate for the month fell by 0.4 percentage points, from 7% to 6.6%, and the state revised its October job numbers upward by 29,800, citing “more complete reporting from employers.”
“So far this year the state’s job count has increased by almost 200,000,” Charles Steindel, New Jersey’s former chief economist, said in an analysis for the Garden State Initiative (GSI). “We are still about 170,000 jobs under the February 2020 peak, but with continued gains and the likelihood that the number has been understated, there now appears a reasonable chance a new peak could be reached next year.”
While all private sectors except construction saw job growth during the month, the state’s unemployment rate still exceeds the national average of 4.2%. Public sector employment also decreased.
“However, in contrast with the nation, where November saw a big drop in unemployment and a large increase in the labor force, New Jersey’s labor force was virtually unchanged,” Steindel said. “The longer-term stagnation in New Jersey’s workforce … remains baffling, even taking into account our sluggish population growth.”
The Garden State has recovered about 76% of the jobs, or 548,500 jobs, lost in March and April 2020 due to the COVID-19 pandemic, according to a New Jersey Department of Labor and Workforce Development news release.
New Jersey’s Unemployment Rate