Is it easy to do business in New Jersey? According to a recent report by the Tax Foundation, a research group that analyzes tax policies across the nation, the state has room for improvement.
Is it easy to do business in New Jersey? According to a recent report by the Tax Foundation, a research group that analyzes tax policies across the nation, the state has room for improvement.
The organization released its “2017 State Business Tax Climate Index,” which sought to determine how well each state structured its tax systems, comparing them with each other to identify states with the best and worst business environments.
How the Tax Foundation conducted its analysis
Instead of judging each state based on how much individuals, small businesses and corporations had to pay in taxes, the Tax Foundation analyzed the simplicity of each tax system, and whether those systems encouraged businesses to either leave or remain in one state or another.
The Foundation maintained that a state could have all major taxes (the corporate income tax, the individual income tax and the sales tax) but still offer an economic climate in which businesses could prosper. For instance, although Utah imposes all three taxes on its residents and businesses, the organization ranked the state as the 9th best state in the country.
Where New Jersey stood
Across the board, New Jersey ranked on the lower end of the nation. With respect to corporate taxes, New Jersey rang in at 42. The report also noted the state had the worst property tax rate in the U.S. Overall, the state’s tax code is quite complex, which may discourage current businesses from relocating to New Jersey in the near future.
While the Foundation ranked New Jersey as having the worst tax system in the nation, the organization conducted the report before the state made a serious change to its tax code by eliminating the estate tax. Lexology noted that Governor Chris Christie signed legislation that will repeal the estate tax for those who either die on or after January 1, 2018.
In addition, the new law will increase the estate tax exclusion amount from $675,000 to $2,000,000 for decedents who pass away on or after Jan. 1, 2017 but before January 1, 2018.
Do you have any questions? Would you like to discuss the matter further? If so, please contact me, Amy M. Van Fossen, at 201-806-3364.
Understanding Chattel Paper: A Key Component in Secured Transactions
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
