Wage Wars
Starting with the good news: the New Jersey corporate tax surcharge is set to expire at the end of 2023. That change would reduce the state’s top corporate tax rate from 11.5% to 9%.
But other factors continue to erase some of the benefits of living in the Garden State.
Currently New Jersey represents an economic environment that is one of the most taxed in the country. Aside from New Jersey having the highest property taxes in the country, an average of $9,000 per property per year, it also imposes a number of other tax burdens, which has now earned it the bottom rank for taxes of all 50 states.
According to the Tax Foundation, New Jersey is at the bottom of all 50 states because of its high corporate tax rates and high individual income taxes. New Jersey levies taxes on not only income but also inheritances and some other international income. As a result of these harsh governmental laws, New Jersey finds it to be very difficult to attract new businesses that produce economic growth. The impact of such high taxes ends up costing consumers more for the cost of goods, and also reduces the wages of individual employees, as well as fewer jobs.
The number of Fortune 500 companies headquartered in New Jersey has fallen from 22 in 2006, to just 15 in 2022.
That is why states such as Florida, North Carolina, South Carolina, and Texas were able to attract so many businesses south. New York State ranked as the 49th worst state for business taxes.
Currently Texas ranks number one for the number of Fortune 500 companies headquartered in the state at 50. California came in as number two and New York fell to number three.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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