New Jersey’s Economic Woes and Property Tax Issues: Jonathan Williams on The Hugh Hewitt Show
“It's a cautionary tale for the rest of America, but they've got some great ideas to turn the state around.”
Whether you’re in Trenton, Newark, or along the Jersey Shore, it’s hard to turn on the news without hearing about New Jersey’s property taxes. The questions are the same everywhere—how high will rates climb, what does it mean for families, and why are residents leaving in droves?
That was the backdrop when Hugh Hewitt spoke with ALEC President and Chief Economist Jonathan Williams last week about the Garden State’s tax burdens, energy costs, and economic outlook.
The conversation began with a broad overview of New Jersey’s economic landscape.
“Being up there yesterday, I can tell you, people are fed up with New Jersey and the way that they’re going,” Williams said. “Right when you look at their rank, number 48 in economic outlook in our latest Rich States, Poor States report—some of the highest taxes, some of the most egregious regulations, worst policies across the board, and under Governor Phil Murphy, they’ve doubled down on the failure. They’ve raised taxes, they’ve raised spending, even during the pandemic.”
Williams highlighted New Jersey’s trajectory compared with other states.
“You actually have a governor, who says he wanted to become California East. Think about that for a second. So should we be surprised when New Jersey now has lost more than 500,000 residents on net over the last 10 years because of this tax and spend formula?”
Williams then noted New Jersey’s heavy property tax burden and high income tax rates.
“If you’re there and you can’t avoid property taxes, and I got the stats you sent me, their top marginal personal income tax rate is 11.75%, 47th in the nation. Their top marginal corporate income tax rate is 9%, which is 43rd in the nation, and their property tax burden is 48th in the nation.”
Reflecting on the state’s history, Williams traced the roots of today’s challenges.
“It wasn’t that many decades ago, and New Jersey was a very prosperous place. In fact, you go back to the 1960s, New Jersey didn’t have an income tax or a sales tax. They were New Hampshire in the 1960s, and to deal with property taxes, they adopted income taxes and sales taxes, but the thing they forgot to do here… is they forgot to stop the overspending by cities and counties that just have a new need for every last taxpayer dollar that’s out there.”
For New Jerseyans facing rising costs, Williams’ assessment was clear: “It’s a cautionary tale for the rest of America, but they’ve got some great ideas to turn the state around.”