As lawmakers prepare for the fall session in Trenton, others are waiting to see what will happen with key issues like taxes, the minimum wage and jobs. New Jersey Business and Industry Association (NJBIA) President Philip Kirschner told NJ Today Senior Correspondent Desirée Taylor that his group supports a tax cut, opposes loopholes to the 2 percent property tax cap and opposes raising minimum wage at this time.
Kirschner said he believes it’s important to offer tax relief, especially during difficult economic times. “I think you’ll find that among businesses that the single most important thing that state government can do to stimulate the economy is to give businesses and residents a tax cut so that’s one of the things we’ll be fighting for in the fall,” he said.
Another topic the NJBIA wants to address is the 2 percent property tax cap. Kirschner explained that there are loopholes with the cap because municipalities can raise fees and put surcharges on licenses and activities for residents, which doesn’t count toward the cap. “There’s legislation I think on a bipartisan basis that would say 2 percent means 2 percent and that includes all the fees and surcharges that you charge,” he said.
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Minimum wage is another topic of contention. Kirschner said raising the minimum wage when the economy is weak could be a mistake, especially if it’s a 17 percent increase all at once. “You can’t do that and expect to have the same level of jobs and the same level of hours when the businesses are not having their revenues or sales anywhere close to 17 percent,” he said. “So we actually think it’s a well intentioned but really a counterproductive measure to help people.”
Supporters of the minimum wage increase have said that a state like New Jersey with a high cost of living needs to raise the lowest wages, but Kirschner said making that move now will do more harm than good. “If you raise wages as you said over 17 percent and your revenue’s only going up 2 percent, something has to give. And that usually is hours and jobs, particularly in a bad economy,” he said. “In a better economy there’s some ability to absorb some increase, but in a bad economy like we have now, Desirée, it’s just counterproductive.”
Jobs in the Garden State have been another hot topic. Recently, Roche decided to close its operations in Nutley, leaving nearly 1,000 without work. The company is considering putting a new research center in New Jersey, however. Kirschner said the happenings are a mixed blessing. He said Gov. Chris Christie and the legislature have given the state more access to scientists and research institutions with the restructuring of higher education. Attracting pharmaceutical and biotech companies to the state is important, he said.
“We also have a bond issue on the ballot — $750 million to help higher education build laboratories and classrooms and the kinds of research centers that we need to attract these kinds of companies and jobs to this state,” Kirschner said. “And I think you’ll see people from both parties working hard this fall to get that bond issue approved.”
Hispanic-owned food company Goya decided to keep operations in New Jersey after receiving large tax incentives. When asked if tax incentives will be the norm to keep and lure more businesses, Kirschner said, “It really depends. Businesses have a lot of choices now. New York, Pennsylvania, Maryland are trying to poach the businesses. … In many cases we have to match that if we want to keep these good jobs here in New Jersey.”