Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...
A $7 billion tax incentive offer by New Jersey Gov. Chris Christie (R) to entice Amazon.com Inc.'s second headquarters into the state has drawn protests by advocacy groups from both sides of the political spectrum.
The liberal-leaning think tank New Jersey Policy Perspective and conservative group Americans for Prosperity-New Jersey have united in objecting to the tax-break plan. The groups joined a New Jersey legislative leader, Deputy Assembly Speaker John Wisniewski (D), in a news conference Oct. 23, a week after Christie unveiled the 10-year plan for state and local tax breaks in support of the bid by Newark, N.J., for the Amazon HQ2 project.
A representative of the American Legislative Exchange Council, an organization of conservative state legislators and stakeholders that drafts model legislation for statehouses across the U.S., also joined the groups at the conference.
The groups “don’t agree on much when it comes to tax and economic policy, but we are in absolute agreement that offering $7 billion in tax breaks to a single corporation is terrible policy and a big step in the wrong direction,” said Jon Whiten, NJPP vice president, in a statement.
Amazon’s HQ2 project has lured 238 proposals from cities and regions extending across 54 states, provinces, districts and territories in North America, according to the company.
Whiten called for the Legislature to resist a Christie proposal in a post-election lame duck session to expand the state tax incentive program to accommodate the Newark bid. The state has already approved $8 billion in tax breaks for companies since 2010, NJPP said.
“While the proposal would provide good jobs in the region, it also robs the state of the very revenue needed to address the consequences of such growth and development,” Wisniewski said in a statement.
Pointing to mass transit and women’s health as examples of other spending needs, he questioned whether the state could “afford $7 billion in subsidies for Amazon, one of the world’s most successful businesses.”
The ALEC representative, legislative analyst Thurston Powers, took an anti-tax stance toward the state’s Amazon bid.
“Targeted tax credits and carve-outs benefit the politically connected at the expense of other taxpayers,” he said in a statement. Higher tax rates “imposed on everyone else” to support “this $7 billion public relations stunt,” he said, would cost jobs and drive away businesses.
Powers called for major reform of the state tax code to make it “as broad and as flat as possible,” adding that “reducing the cost of doing business in New Jersey could help all businesses and individuals.”
To contact the reporter on this story: John Herzfeld in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Jennifer McLoughlin at email@example.com
Copyright © 2017 Tax Management Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)