I believe so and that is why one of the center pieces of my economic agenda for New Jersey is doing away with the income tax of C corporations in the state.
But I know that is not easy to understand. Above all it is hard to comprehend why we should stop taxing companies when we still tax individuals. All the corporate taxes collected by the state of New Jersey amount to about 8% of the total state budget. Do not believe for a moment that I am comfortable with the idea of doing away with corporate taxes. But I believe it is a must.
On the other side, I propose that minimum wage climb to $15 with health benefits or $18 without. I feel comfortable with that proposal. And I believe it is necessary too. We must push up the wages scale to increase demand for goods and services. Once demand increases, supply will increase as well. With supply come jobs.
Any inflationary pressures fueled by the additional cash flow I believe would be tempered by our neighboring states where those changes are not taking place. Merchants would benefit from the absence of property and corporate taxes but would be ill advised to increase prices beyond the national trends. Consumers on the other hand would benefit from the abolition of the sales’ tax.
I very much believe that the elimination of the corporate income tax is the best tool New Jersey can aspire to use in order to, not only keep those corporations already based in the state but to attract new ones.