New Jersey 29th in Happiness Index

Source: MainStreet.com

The Happiness Index, which looks at household income, debt, employment and foreclosures, is a fresh take on the old and tired Misery Index, made popular in the 1970s. The Misery Index takes into account unemployment and inflation rates and seeks to identify the most financially miserable places to live. The Happiness Index, on the other hand, is all about which states are best weathering the current economic storm.

Click here for the Index.

Chamber Applauds NOL Extension Bill Signing

By enacting legislation that extends the net operating loss (NOL) carryover period from seven to 20 years, the Governor and members of the Legislature are taking an important step to revise our corporate business tax code so that New Jersey is positioned to come out of this economic recession in a better competitive position in terms of job creation.

Today, more than ever, accountants and chief financial officers will be scrutinizing their balance sheets and seeking opportunities elsewhere where it makes financial sense. We are pleased our leaders are reviewing past policies and amending them, if necessary, so that our companies have a better chance to succeed and grow over the long-term.

NOL provisions allow businesses to weather economic fluctuations by allowing additional time for investment, growth and expansion, which is particularly important for small businesses and new ventures. Extending the time period for net operating losses will help struggling businesses survive the downturn and retain jobs.

Now that the NOL bill has passed, we are looking forward to the passage of other measures that will reform our tax code and encourage companies to stay here in New Jersey, as well as create jobs. This includes repealing the “throw out” rule and Regular Place of Business requirements, and providing a single sales factor formula. These are all recommendations included in the Chamber’s Corporate Business Tax Reform Package presented to the Governor and members of the Legislature.

In the midst of this current crisis, when all sized businesses are struggling, today's action sends a positive message that our government leaders are serious about putting a plan in place that helps us through this economic crisis and positions us well during the next upturn.

New Jersey's Economic Crisis

Members of the New Jersey Legislature met in a special session yesterday to discuss ways to provide relief to companies in order to spark the economy during these troubling times. The impression provided during the legislative session is that New Jersey became uncompetitive overnight as a result of the current economic woes plaguing the stock market and the rest of the nation’s economy.

In actuality, New Jersey's high taxes and past business policies have stifled job growth and investment in the state for quite some time. The Chamber has been warning for many years that New Jersey’s longstanding fiscal problems would multiply tenfold should a major national economic crisis occur. All indications are that that day has arrived and now our elected officials are scrambling to make some adjustments and undue policies that have resulted in us placing last or close to the bottom in almost every competitiveness poll.

We are pleased that some of the corporate business taxes implemented in 2002 might finally be repealed. It is unfortunate that it took a major crisis for some of these onerous policies to finally be reviewed and hopefully changed.

Click here to read more about the chamber's activities to reform the tax policies of New Jersey.

Chamber Applauds Corzine Ethics Reform Announcements

At 2:30 p.m. today, the Governor will be signing an Executive Order on the steps of the State House dealing with ethics reform.

Specifically the Executive Order will:

• Ban political contributions by state redevelopers and their consultants
• Tighten the current ban on state-contractor contributions to include those made by partners of professional service firms
• Appoint a task force to study whether the Local Government Ethics Law should be changed to match state law
• Update financial disclosure rules for members of newly created boards and commissions
  

In addition, he will be pushing for legislation that will:

• Ban contributions by county government contractors to municipal candidates and ban contributions by municipal contractors to county candidates
• Ban contributions by developers seeking development approvals
• Ban contributions from audit firms and partners to audit clients
  

By signing today's Executive Order and by calling for stronger legislative initiatives designed to dissuade government corruption, he is improving our state's reputation to investors and restoring residents' faith in our government institutions and leaders.

As business advocates, we see this as an economic issue. Financial commitments are made to the state when investors know they are working with elected officials at all levels of government that they believe to be honest. When the credibility of public servants is called into question, investment is chilled and our reputation is forever damaged.

The New Jersey Chamber of Commerce's Platform for Progress Government Reform Coalition applauds these initiatives. If nothing is done, the corruption stories that appear too often will only increase, as these activities become the norm - or the culture of the society.

What Do You Think of the New Transportation Proposal?

Yesterday, the New Jersey Turnpike Authority's board requested that tolls be raised starting in 2009 to help pay for much needed transportation projects. The increases will go towards widening the New Jersey Turnpike (Exits 6 to 8A) and the Garden State Parkway (Exits 63 to 80 and around Atlantic City); providing $1.2 billion over 10 years to fund a mass transit rail tunnel into Manhattan; ensuring bridge safety; and increasing funding to New Jersey Transit.

Tolls on the Parkway would increase from 35 cents to 50 cents in 2009, 75 cents in 2012 and 85 cents in 2023. Drivers that today pay on average $1.20 on the Turnpike see tolls increase to $1.80 next year, $2.70 in 2012 and $3 in 2023.

While the State Chamber and the Platform Coalition have not taken an official position on the current proposal, the organization has supported the projects mentioned in order to improve our transportation infrastructure and boost our economy.

The last time Turnpike tolls increased was in 2000 and Parkway tolls have not gone up since 1989.

For the latest updates on this issue, when they become available, please visit www.njchamber.com.

Tell us what you think of this new proposal.

Click here to complete the survey.

Sign the Pension and Health Benefits Reform Act of 2008

It is almost Labor Day and Governor Corzine still has not signed into law the Pension and Health Benefits Reform Act of 2008, which was passed by members of the legislature back in June. As a result, the Associated Press is reporting that newly hired teachers and public workers are still getting the same generous benefits received in the past - the same ones that add to the cost of government and create a larger long-term debt load. These are also benefits that can't be taken away once offered. The chamber backed the reform measures and we urge the Governor to sign them into law immediately so that we can begin to realize some savings and put less burden on current and future taxpayers.

The reform act is only the first step in changing the system. In fact, the current modifications are pretty minor. The Chamber encourages the legislature to consider additional changes, such as increasing the retirement age of public employees to 65; replacing the defined-benefit hybrid plan for new hires with a defined contribution plan; negotiating one contract on behalf of all local workers where the state picks up the cost; and phasing out lifetime benefits for retirees, as has been done successfully in the private sector.

The state still has a long way to go to truly reform the system, but let's get started by having the Governor sign the Pension and Health Benefits Reform Act of 2008 into law.