Thursday, January 27, 2011
When New freakin' Jersey thinks it can recruit business away from your state, you know you have a problem. Governor Awesome has gone on the offensive for New Jersey business, and his target is -- and this has gotta hurt -- Illinois!
Yesterday, New Jersey launched a print and audio campaign designed to attract business from other states and its first target was the state of Illinois. The campaign, which attacks Illinois 67% increase in income tax rates and 46% increase in corporate tax rates is calling on the business community there to relocate. The ads include a promise from New Jersey Governor Chris Christie that his administration will not raise taxes and that the state is aggressively pursing economic growth.
The campaign is set to begin this week in some of Illinois biggest markets including Chicago and Springfield, with print ads in most local newspapers and audio ads on radio and television. The action follows an earlier letter writing campaign initiated by Lt. Governor Guadagno which sent appeals to relocate to several Fortune 500 companies and larger businesses with their headquartered in Illinois.
“In New Jersey, we mean business. We’ve said ‘enough is enough’ and made the tough choices to cut spending. By providing a positive, pro-growth climate we are making it easier for businesses to Choose New Jersey and welcoming jobs and economic growth for our residents with open arms,” said Governor Chris Christie.
Here's GA's press release, and here is a pdf of the print ad, which is hilarious unless you pay taxes in Illinois.
Awesome! At the risk of channeling Michelle Obama, for the first time I'm proud to be a Garden Stater.
CWCID: Regular commenter Dawnfire82.
What's pro-business about New Jersey? Have its income or sales taxes gone down? Have its tops in the nation property taxes gone down? How about regulatory burden? The governor means well, but truly substantive reform is beyond his reach given the legislature and entrenched bureaucracy he's saddled with, both of whom will fight him to the death should he propose real reform.
At this point, I think the idea is "sucks less than Illinois, with the possibility of improvement." A weaker pitch than Indiana, Wisconsin, and other nearby states trying to poach from Illinois, but for some businesses proximity to New York and Delaware might count for a lot.
As a long time resident of Cook County, I can honestly say that the only thing keeping me and my business here is keeping my children close to family. Once they are out of school, the jobs I support are gone.
Um...There are only three other states with corporate rates higher than NJ so it's not like the Governor has a lot of states to woo!
Moreover the difference in corporate tax rates between NJ and Illinois is less than 0.5%. That won't cover the cost of changing counties much less states.
Add in NJ's income tax rates--higher than Illinois' even after the 67% increase--and it's less than awesome. Even for the Governor.
I think he knows.
Of course, there's always Texas, which has no corporate income tax, a maximum 1% franchise tax, and no personal income tax. Sales tax is 8.25%, property taxes vary by county, and it is unconstitutional for any legislature to bind any future legislature so there is no possibility of ruinous public entitlements being entrenched by law.
*sigh* Now I'm homesick.