New Jersey Should Say No to a Massive Corporate Giveaway
Washington, D.C. — The American Economic Liberties Project released the following statement ahead of New Jersey’s Assembly Appropriations Committee’s hearing on new corporate tax incentive legislation, the New Jersey Economic Recovery Act of 2020.
“New Jersey’s task force investigation into its economic development policies was thorough and commendable. Unfortunately, this bill fails to apply many of the lessons learned,” said Pat Garofalo, director of state and local policy at the American Economic Liberties Project. “At $11.5 billion over six years, the ‘cap’ on spending is absurdly high – exceeding the amount spent under the previous administration. That money will disproportionately benefit big corporations, leaving little for the small businesses that are bearing the brunt of the pandemic and that build strong local economies and communities.”
“To be sure, there are some important reforms and innovative programs included in the bill that will help protect taxpayers’ interests,” said Garofalo. “But they are vastly outweighed by the failure to fundamentally alter a theory of economic development that reams of research – and New Jersey’s own experience – show to be a total failure. Without substantial revision, New Jersey lawmakers should reject this bill.”
Economic Liberties works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.