cover image: The Real Cost to New Jersey of Being an Outlier - The Impact of Steep Corporate

The Real Cost to New Jersey of Being an Outlier - The Impact of Steep Corporate

9 Mar 2023

Research The research herein was sponsored by Garden State Initiative and includes data – as cited- from the Internal Revenue Service, The Tax Foundation, The New Jersey State Policy Lab at Rutgers Univer- sity, the US Census Bureau, the Bureau of Labor and Statistics, the Bureau of Economic Analysis, and the New Jersey Division of Taxation. [...] We recommend that the surtax be eliminated immediately and that the state responsibly move to reduce the tax rate to the national average, and if possible, to eliminate the tax altogether. [...] Evidence from Federal Tax Policy Another way to estimate the effect of the elimination of the CBT is based upon the Council of Economic Advisors (CEA) analysis of the impact of corporate tax reform in the Tax Cuts and Jobs Act.21 As Kevin Hassett and his colleagues argued, “[The] sizable empirical literature measures the relationship between wages and corporate taxes, controlling for other variabl. [...] THE REAL COST TO NEW JERSEY OF BEING AN OUTLIER 33 others have shifted to a benefit-based approach, apportioning the income to the state where the ben- efit of the service is received. [...] Indeed, market-based sourcing mirrors the single sales factor approach, appor- tioning service-based income to the location of the purchaser rather than the location of the people supplying the service, just as single sales factor apportions income based solely upon the location of the sale.

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Pages
42
Published in
United States of America

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