Do we truly want manufacturing back in New Jersey?


From my page Economic Highlights:

5. Profits from C corporations operating with a significant presence in New Jersey will be also tax-exempt.

This could be one of the most controversial proposals and duly so. But the principal rationale behind it is to attract more large corporations to set up shop in New Jersey. We must ask ourselves: Do we want those jobs in our state or not? If the answer is yes, we will be competing with cheaper labor overseas and even in other states. Therefore we must make sacrifices to attract them.

On the other hand, we would tax at a much higher rate dividends paid to New Jersey residents by corporations which choose not to have a presence in the state:

6. Direct dividends from corporations that do not have a presence in New Jersey will be taxed at a rate of 75%  of margin after federal taxes. Owners of stock of those corporations will be liable for 75% of their profits after federal tax. NOTE: Retirement accounts such as IRA and 401-K are excluded from this provision.

Introducing these points, I am seeking to start a state-wide debate to see how far we are ready to go in order to re-industrialize New Jersey.

Advertisements