New Jersey officials routinely compare life in the Garden State with our neighbors. It’s an easy scorecard to measure quality of life and economic opportunities — and it seemingly always comes with a metric that shows New Jersey is better.
That hasn’t been the case during the race to be the next governor.
During nearly every stump speech this summer, Democrat Mikie Sherrill and Republican Jack Ciattarelli point to Pennsylvania as a place to emulate when discussing business policies.
Ciattarelli routinely mentions his admiration for Pennsylvania’s low corporate business tax — it’s already lower than New Jersey’s corporate business tax rate of 11.5% and is on course to be lowered to 4.99% in 2031.
Sherrill, meanwhile, routinely praises the ease in which businesses can be created in the Keystone State.
It’s as if both are campaigning for Pennsylvania Gov. Josh Shapiro.
“The reforms that Gov. Shapiro has adopted in Pennsylvania are absolutely a model for New Jersey,” Sherrill told BINJE. “I recently introduced my ‘Save You Time and Money Agenda’ to reduce the delays and costs that businesses currently face when they deal with the state government. Part of this agenda is significantly reducing wait times for business licenses — Pennsylvania has cut by 90%, which will make it easier for businesses to start and grow in the Garden State.”
Ciattarelli also said Pennsylvania is setting a standard for success.
“I have long cited Pennsylvania as a model New Jersey should follow in regard (to the CBT),” he told BINJE. “The fact that our businesses pay the highest taxes in the country at 11.5%, and their competitors located just over the Delaware River pay less than half that is outrageous.
“As governor, I would seek to reduce the Corporation Business Tax by one percent per year for five years, taking it from the highest rate in the nation to one that is competitive with Pennsylvania and others states across the country.”
The candidates’ willingness to say they would copy Pennsylvania — in fact, the willingness to recognize that there is a better way to do things — was pleasing to hear for New Jersey business leaders.
Tom Bracken, the CEO of the N.J. State Chamber, said it’s a practical point of view.
“It’s just like any other thing, if you see somebody doing something well, and you can make your state better by doing it, too, you should,” he said. “There’s no plagiarism here. Some people, some places, just do things better. If we have the opportunity to copy them to make the state better, we should.”
So, what’s the view in Pennsylvania?
Chris Bravocos, a communications consultant and lobbyist who is the founder and CEO of Bravo Group in Harrisburg, Pennsylvania, said Shapiro often is asked about a neighboring state.
“It’s just not Jersey,” Bravocos said.
“In Pennsylvania, the governor is constantly asked about Ohio, which is considered the standard for economic development. Jn fact, he recently said, he’s tired of talking about Ohio.”
The typical business leader has a different take.
A recent trip through the state produced a number of conversations with restaurant managers and business leaders who were stunned to learn that the business tax in neighboring New Jersey could be so high.
“That explains why so many people from Jersey move here,” one said.
Sherrill and Ciattarelli seemingly have had the same revelation.
“It’s far too expensive for businesses to operate in New Jersey,” Sherrill said. “It’s driving innovation and good-paying jobs elsewhere and stifling our economy. One thing we can do right away to lower costs for businesses is eliminate the business registration fee, and I’ll do exactly that as governor.”
Ciattarelli agreed. And, not surprisingly, placed the blame on the party currently in power.
“We are regularly cited as the worst place to start or do business in America because of our highest-in-the-nation property taxes, steep income taxes and overall high cost of living, which now includes exorbitant electricity bills due to the energy policy failures of state Democrats,” he said.
“It’s why I have proposed reducing income taxes for all taxpayers, consolidating tax brackets, prohibiting tax increases on home improvements and making student loan interest tax deductible.”
Or, said another way, perhaps New Jersey should simply copy Pennsylvania’s business blueprint. Or maybe Ohio’s.
Lori Campos Bergeron contributed to this report.
