New Jersey places dead last in list of business friendly states
Filed under: Economy
New Jersey often plays second fiddle to neighboring New York, but a new survey of the 50 U.S. states shows the Garden State bested New York in having the least favorable tax climate for business. It's the second consecutive year New Jersey has finished dead last, according to the 2010 State Business Tax Climate Index released this week.
How does New Jersey do it? In addition to having the country's highest property taxes and among the highest individual and corporate income taxes, New Jersey implemented a number of new taxes this year that hurt its overall score, said the nonprofit Tax Foundation, a tax research group that has prepared the report since 2003.
The index measures the competitiveness of the 50 states' tax systems and ranks them based on taxes that matter most to businesses and business investment: corporate income, individual income, sales, property and unemployment insurance.
At No. 49, New York has nothing to crow about. The state finished 50th in taxes on personal income, according to the index. It also has among the nation's highest property and unemployment insurance taxes. The high cost of doing business in New York has long led local business leaders to champion reforms and reduced taxes.
From what Samuels could gather from the new budget, he said, "there isn't a single initiative or component that will create a single job in New York state." Further, the bill contains no incentives to induce companies to remain in or relocate to the state.
In addition, New York has implemented a new tax on employers and self-employed workers who live in New York City and seven surrounding suburban counties to help rescue the region's transportation authority from a $1.2 billion shortfall in the agency's budget through 2014. It is the implementation of such taxes, Samuels fears, that will make New York "the best of the worst" in future rankings.
Following New Jersey and New York at the bottom of the Tax Foundation index is California, at No. 48. Next in line are Ohio, Iowa, Maryland, Rhode Island, Minnesota, Wisconsin and Vermont.
South Dakota ranked No. 1 with most "business friendly tax system," followed by three other Western states -- Wyoming, Alaska and Nevada. Florida placed fifth, succeeded by Montana, New Hampshire, Delaware, Washington state and Utah, the Tax Foundation said.
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Reader Comments (Page 1 of 5)
9-24-2009 @ 12:46PM
Dave said...
YOUR A POLICE STATE. THAT IS YOUR PROBLEM.
ALSO, MAYBE ITS TIME TO PUT IN A CONSERVATIVE AGENDA AND BOOT OUT THE LIBERAL LIES AND CUT OUT WELFARE.
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9-24-2009 @ 1:40PM
Andrew said...
Besides being the worst State in USA for business, New Jersey is also the most horrible state for any true American Citizen, and it was also ranked the WORST STATE in USA for having a Driver's License in (by an AOL Survey earlier this year).
New Jersey is worst to have a driver's license in, because the State figured a way to "Scam" extra money out of many of its drivers via Insurance Surcharges of $400 to $1200 they wack many residents with in order to keep your license. NJ hits you with this if you get a few parking or speeding tickets, only one traffic ticket per year for 3 years, and they will SURCHARGE YOU OVER $1000 for next 3 yrs. or take away your license.
NJ also has special laws that allow its petty government employees to harass honest citizens constantly, and you can't sue them in any NJ State Court. Conversely, if any of the government agents (including aggressive property inspectors looking for handouts, or rogue cops) abuse you and you want to report it, forget about the government ever upholding the Law when their own fellow "NJ Govt. Gang" employees do wrong. And the NJ State Courts are useless in this as well. Neighboring NY State has 30,000 cases settled per year against harassing government agents...etc., NJ has about 70. They have special laws that allow the government agents and their DYFS (child abuse agency that harassed Parents) "immunity" in their state courts. They can do anything to you, you can't defend yourself by suing back... unless you have $100,000 to spend in Federal Court.
New Jersey's Government has basically over the years become similar to a former Communist Country. Don't expect accountability, don't expect privacy, and don't expect honesty.
NJ Govt. only exists to benefit the Government Employees and their huge pensions after 20 - 30 years (cops and teachers retire on $100,000, off your backs), and their Welfare collecting clientelle. That's why the taxes are so high, now highest in USA.
Take it from someone who had a small manufacturing and importing business in New Jersey from 1975 - 2001. DON'T EVER SET UP ANY BUSINESS IN NEW JERSEY. And that goes double if you're a Male Parent.
NJ has the most atrocious laws and often atrocious judges that take the Femi-Nasty Role and assume all men are guilty of some kind of "abuse" and so enter NJ Domestic Violence Restraining Orders against all males, regardless of there having been no act of violence. As long as some aggressive female who wants your house and wants you to be kicked out and pay her, calls you some names in court.
That's the sad truth about New Jersey. Unless you're a welfare collector, stay out of this nutty N.E. Femi-nasty ruled and the most Corrupt* state.
*The FBI recently called NJ the most corrupt state in USA.
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9-24-2009 @ 2:58PM
ray said...
family-business owner from 1977-present. i have to agree with everything said. NJ is a horrible place for business. i can't wait to sell and retire. corruption, inefficiency, taxation, and attitude. all adds up to "stay away"
9-24-2009 @ 6:13PM
jm said...
I am amazed at how the state of washington scored so high on places to run a buiness. Second highest gas tax, property taxes running just under 2% of asessed values. Tax assesments running 25-30% higher then current market values. Business and occupation tax on all businesses on their gross income regardless of net income or losses. Personal property taxes on business fixtures,inventory tax it just goes on and on( not enough room to list all of the crazy fees a small business owner pays to keep the doors open). It works when the economy is rolling but kicks the crap out of you during recession times. VOTE ALL OF OUR CORRUPT POLITICIANS OUT OF OFFICE AND START OVER. THEY ARE ALL CROOKS !
9-24-2009 @ 1:22PM
FOXYLYNX said...
IT'S NOT JUST SMALL BUSINESS, IT'S ALL OF US. THEY TAX US TO DEATH HERE ON EVERYTHING. WHERE DID ALL THE MONEY GO! PROPERTY TAXES, CIG TAXES, STATE TAXES, HIGH ENERGY BILLS AND GAS PRICES - AND IT JUST KEEPS GOING UP AND UP. I HAVE A NEW SLOGAN: "I HATE NY" AND INSTEAD OF A HEART ON THE SIGN PUT A TOILET!
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9-24-2009 @ 1:38PM
Harry said...
NJ is an example of what happens when you give the liberals total power. It will happen to the entire US if we let Barney Frank and Nancy Pelosi continue to steer the country.
It's not great, but a balance of power between the parties is needed (if not a true 3rd party that represents the people)!
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9-24-2009 @ 1:35PM
Ralph said...
NJ is the most corrupt state in the country.
It's been like this since the 1930's when
Mayor Laquadia threw the Mafia out of New York.
The Saparnos was not a scripted drama but more like
a high end reality show. Just look at Edgewater, NJ
Ten years ago the Gov't said the land was so polluted
(superfund site)Site they wouldn'y issue construction permits for strip malls, Jump ahead a few years and there are major housing developments happening on exactly the same spots. One complex was even built on stilts so that the ground could be cleaned up at a later date.Yea Right.
When this place was being built the construction workers
walked off because the ground caught fire. Quess what
after the union leaned on them they were back the next day.
New Jersey is a pit of corruption and we the people
get screwed every day and twice on Sunday
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9-24-2009 @ 1:38PM
Andrew said...
Yep, and besides the highest taxes in the USA, New Jersey's also the most corrupt state the FBI recently said in its sting operation rounding up about 40 mayors and town councilmen on the take. The corruption is even at the Very Top: Remember the last Gov. McGreevy?
He resigned for supposedly being found out to be "gay". But that wasn't it, no-one really cared about that. Rather he had given his Gay Israeli Lover a NO SHOW GOVERN. JOB, costing the taxpayers $100K. Plus Gayvernor McGreevy also stole money via certain kickbacks.
But in NJ this Corrupt former Gov. never even went to Jail, instead was allowed to resign for supposedly just being Gay. In nearby Connecticut, at least they put their former corrupt Governor in JAIL.
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9-24-2009 @ 1:57PM
dennis said...
New Jersey...The Soprano State....
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9-24-2009 @ 2:11PM
Sonny said...
The word "government" should be reclassified as a verb....yep...it describes the act of legally taking money from hard working people. Or maybe, government is simply an excuse to take the fruits of labor from people and to use it for their own whims, purposes, or whatever........They can't take it fast enough, so now they have resorted to just printing it, which makes whatever we have left, worth almost nothing..............
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9-24-2009 @ 2:12PM
John said...
None of this surprises me. We do business in more than 30 states and in two other countries. NJ laws and auditing are so arcane that we refuse to collect their sales tax and some other taxes (we can legally do this thanks to Federal Law) on goods we ship there. Of course, they are the losers as they have are on their own to "discover" who is buying from us in order to collect taxes. They threaten us but we know they can't do anything. They are losing tens of thousands of dollars in taxes annually.
NY is a close second.
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9-24-2009 @ 4:32PM
gd said...
Welldone & well said. If you folks would like lower taxes of every stripe, cheaper housing and a whole lot less crime come to Oklahoma or Texas. We will welcome you and you will wonder what took you so goll danged long.
9-24-2009 @ 2:18PM
Pissed Off said...
As a small business owner in New Jersey I see first hand how these Liberal & Marxist goverments in NJ and NY work. It seems they are trying to kill off all of the small businesses to promote their socialist waay of life. The family leave act in NJ is one to start with.
What Comrad Corzine in NJ invisions is everyone working for the common good "Of the Collective" sounds like something out of the Star Trek series with the "Borg". Keep a look out, Obama has the same dream for the whole United States!!
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9-24-2009 @ 2:42PM
Jeff said...
Whitman was an awful republican governor. Don't blame the democrats, everyone in power here has been pretty bad.
The conservatives are afraid to take on the cops and government employee programs because they know they won't get elected. Blame both parties
9-24-2009 @ 5:03PM
gd said...
Perfect analogy. WE ARE THE COLLECTIVE, WE ARE THE BORG, YOU WILL BE ASSIMILATED, YOU WILL BE ASSIMILATED, YOU WILL BE ASSIMILATED. If you wish to join the resistance come to Oklahoma, housing less, taxes so much less, crime so, so much less, friendliness so much, much more. Clean air and water, so much, much more.
9-24-2009 @ 2:19PM
nkotsonis said...
This is a classic example of what happens when liberals control your lives.
This example should be used by the Republicans to regain control of the Congress in 2010, and the Presidency in 2012. Imagine this happening throughout the country. Obama and Pelosi want a Welfare state to control. It's all about power. Their slash and burn policies will destroy this country. The Democrats are doing a very subtle Scorched Earth Policy, and the sheep, brainless liberals, follow to their death singing Kumbaya and Can't we all get along.
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9-24-2009 @ 2:24PM
Thomas Payne said...
Don't forget about the exit tax. If someone sells a home in NJ and wants to move out of state NJ will tax you 2%. What about registration taxes: they go up every year. My property taxes went up $430.00 this year. Since 2004 they went up over $3000.00. I pay over ten thousand dollars a year in taxes. Add that to all the fees-never mind the price increases in the toll roads and bridges-I am trying to get out. The sad thing is that NJ has no natural resources or other income except for business taxation (maybe farming). Businesses want out...in come the business bribes, they tax us so much and drop the business taxes to keep the industry. How many years of corrupt Democratic rule? 2010?
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9-24-2009 @ 5:16PM
GD said...
OKLAHOMA: Drivers Lisc. $25.00, State tax, single male on 110K, less than 6K, Prop Tax on 145K house, about 1.6K, Plates for 3 year old full sized truck, a little less than $100. Full coverage auto on suburban, less than 1500 a year and going down. 2 bed, 2 bath 1300 sq foot apt, with cathedral ceilings, master suite, pool, gated and screened in porch (not counted in sq ft) and ammenities $790/month, parking in private, attached (to building) covered garage, another $65 to 100 month. Cleaner air, cleaner water, friendly folks, much less crime and MUCH better football, hunting and fishing, PRICELESS.
9-24-2009 @ 2:28PM
dan said...
New Jersey as we call it is a Communist state we have been here since 1930 and in the last 20 years became worst . Trenton is like german ss agents unless you have friends in high places. Civil Servants making 150,000 to 300,000 per year with pension . Toll collects 50 to 90 thousand a year. every way the state can get you they do.
look up asbury park press site for state salaries. A city trash collector in our town of 6000. makes 52,000.00 with over time pension and full medical., that's the norn.
we can not wait to sell all our property and leave.
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9-24-2009 @ 2:34PM
Sandy said...
over 60% of what I make on my small very small business is either taxed or fees. And that is before I pay my business expenses. I can't grow or get new equipment because I live in NY and the socialist don't feel I should be able to buy anything new for a while. There are so many taxes to pay here. My new tax is sales tax, in recession I have to raise my rates 9% more to cover the new sales tax & if my customers pay by credit card I lose money with those fees. So I am losing customers fast. I net less now than 10 years ago. Never start a business in NY you will work like a slave for with no profit for years until you figure out you are wasting your time here. I can't wait to leave this corrupted liberal state or no morals!
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