New Jersey Recruiting Illinois Businesses

[AgeOfEnlightenmentSCP]

IL is officially the laughing stock of the country- it may be worse than CA.

Today on wlsam.com I actually heard an ad from some business development group in NJ featuring governor Chris Christie explaining why freaking NEW JERSEY is a better place to do business than Illinois.

He explained how his administration basically "gets it" and they have put NJ back on the right track, and why IL business owners should relocate.

Print and radio ads reiterate Christie’s commitment not to raise taxes. The ads follow substantial tax increases recently enacted in Illinois — and a promise from Christie earlier this month that he would reach out to Illinois businesses personally and invite them to relocate here.

“The job creators of our country are mobile, and they are looking for a climate that provides the certainty and stability that comes with a fiscally responsible government that manages its budgets accordingly,” Christie said. “In New Jersey, we mean business.”

Christie, a Republican, campaigned for GOP gubernatorial candidate Bill Brady, who lost the election to Democrat Pat Quinn. The winner inherited a budget shortfall equal to roughly half its general fund revenue, so Quinn has raised personal income taxes to 5 percent from 3 percent, and corporate business taxes to 9.5 percent from 7.3 percent.

That makes Illinois’ business tax rate higher than New Jersey’s 9 percent for businesses with incomes over $100,000. But its personal income tax rate remains lower: New Jersey’s rate is 6.37 percent for couples earning more than $150,000 a year and 8.7 percent for those earning more than $500,000 a year.

chicagobreakingbusiness.com/2011/01/new-jersey-lauches-campaign-to-woo-illlinois-business.html

I can think of at least 7 states-- just off the top of my head-- that are a far cry better than New Jersey to do business-- Texas and Wyoming top the list, but the obvious considerations for small business owners are the individual, and corporate tax rates and the regulatory environment. NJ is still way down the list-- but it'll be interesting to see where they stand on ALEC index in a few years-- IL? They were racing to the bottom of that list for the last several years, and they just raised the corporate tax 70% and the individual income tax some 60%. Yeah- that's a good idea when there are 9 states with NO state income tax including Nevada which has no corporate income tax.

Read more: notmsnmoney.proboards.com/index.cgi?board=finance&action=display&thread=2327#ixzz1C7mkRPkS

[Savoir Faire-Demogague in NJ]

The intelligent among us know that wealth and income are mobile commodities. Many will argue tooth and nail that these two items are fallacies.

Time and time again we see that those who are wealthy will move out of high taxation regions to low tax regions.

In the last two years, NJ has lost $70 billion of wealth and loses roughly 50,000 residents per year who are fleeing high income and property taxes.

Already on the tax books are substantial highway toll increases that are set to take effect every few years. The Garden State Pkwy will be seeing 50% increase in tolls every four years, if I recall. This hits the middle class the hardest. These tolls will be re-directed to the state budget and not for highway maintenance.

[fairlycrazy23]

States have always competed for business, hopefully states will learn they need to make there state business friendly in general and not 'target' individual companies by promising tax breaks for them if they move there. Just give everybody tax breaks. But as long as the Federal Government is not business friendly, businesses are going to be reluctant to expand or even move because they might be in a state that gets a Federal Bailout that could in part be directed to them.

[traelin0]

SF, you are so right about capital's ability to go mobile. Politicians are just too damn narcissistic and clueless on all matters monetary to get it.

[floridayankee]

Jan 26, 2011 10:55:48 GMT -5 Savoir Faire-Demogague in NJ said:

The intelligent among us know that wealth and income are mobile commodities. Many will argue tooth and nail that these two items are fallacies.

Time and time again we see that those who are wealthy will move out of high taxation regions to low tax regions.

In the last two years, NJ has lost $70 billion of wealth and loses roughly 50,000 residents per year who are fleeing high income and property taxes.

Already on the tax books are substantial highway toll increases that are set to take effect every few years. The Garden State Pkwy will be seeing 50% increase in tolls every four years, if I recall. This hits the middle class the hardest. These tolls will be re-directed to the state budget and not for highway maintenance.

And, the truly scary part......as bad as NJ is, Chris Christie is likely correct that NJ is a better place to do business than IL.

[AgeOfEnlightenmentSCP]

I HATE Illinois, and I really LIKE governor Chris Christie, but c'mon. NJ a great place to do business? The difference between IL and NJ is lubricant; otherwise it's about the same treatment.

[burnsattornincan]

I find it so satisfying to see a State, or any entity, basically paint themselves into a corner by going to the well for so many years and now that we are so much more mobile today one can just pack up and go somewhere else without a whole lot of effort. A lovely thing to witness.

[floridayankee]

Jan 26, 2011 23:59:24 GMT -5 AgeOfEnlightenmentSCP said:

I HATE Illinois, and I really LIKE governor Chris Christie, but c'mon. NJ a great place to do business? The difference between IL and NJ is lubricant; otherwise it's about the same treatment.

I only read the portion of article you copied here, but in that snippet, it said NJ was a better (not great) place to do business than IL. On that point alone, CC is probably correct.

I guess when you've topped the "worst" list for so many years, you're going to blow your own horn when another state trumps you in that category...even if the difference is just lubricant.

[ugonow]

Taxes alone are not a deciding factor. Easy access to transportation hubs, labor pool,prevailing wage rates, and one that is rising to the top of a lot of companies screens , workers comp laws. Some states with low taxes knock themselves out of consideration by their liberal comp laws.

[AgeOfEnlightenmentSCP]

Oh for sure taxes aren't the deciding factor- right to work, at will (IL is an at will state), and the regulatory environment are huge considerations for exactly the kind of job creators a state needs. NJ has a slew of taxes and "fees" that even IL doesn't have- and as far as corruption goes, I think NJ may have a slight lead.

The people of NJ and IL in particular, but really much of the country has been "Overton Windowed". IL and NJ (and NY, CA, and a handful of other failing states) are so far off the cliff corrupt left wing that a liberal to moderate Republican like Chris Christie looks like a firebrand conservative.

I am personally not fooled by any of it. Illinois AND New Jersey BOTH suck.

[ugonow]

One of the biggest knocks on Kentucky for companies is their absurd comp laws. Be prepared to keep forking over millions for employees stubbed toes if you set up shop there.