Today, Congressman Josh Gottheimer (NJ-5) visited General A&E in Hackensack as the next stop on his ‘Tax Cut Tour.’ Proposed tax cuts for businesses of all sizes would help US and New Jersey businesses be even more competitive. Right now, the United States has the highest corporate tax rates of all OECD counties. Gottheimer believes we should cut taxes rates for small, medium and larger multinational corporations. General A&E is a local sheet metal fabricator and manufacturer with defense and other manufacturing contracts.
On the tour, Gottheimer and General A&E President John Baker reviewed the factory and discussed how the high effective rate that the company currently pays is holding it back from competing on a fair playing field.
“General A&E is a classic example of a successful New Jersey business that has done well, but is held back by our burdensome tax system and high rates,” Said Congressman Josh Gottheimer (NJ-5). “Our state is saddled with some of the worst taxes and regulatory bureaucracy in the country. In fact, New Jersey is currently ranked dead last in the Tax Foundation’s state business tax climate index, with uniformly high taxes across every category including property and corporate tax rates. That burden is being felt across our state, costing us jobs and economic growth, with our state’s GDP growth consistently lagging behind U.S. growth for past decades.
“We’re already suffering under the heavy toll of this unfair system; in large part because of tax rates, we have the worst outmigration in the country, meaning that on balance, more people are leaving New Jersey than are coming in. According to the New Jersey Business and Industry Association, we’ve lost a stunning $21 billion in income since 2004. That translates to 87,000 jobs, $13 billion in missed economic activity. And our tax code is rife with loopholes, handouts, industry preferences, distortions and general inefficiencies that have built up over 30 years. That’s why, starting at the federal level, I’m working with Democrats and Republicans on comprehensive tax reform to close loopholes and shelters and lower our corporate tax and pass through rates for small businesses and partnerships. It’s time to draw a line in the Jersey sand, it’s time for tax reform that reflects our New Jersey values.”
Said General A&E President John Baker, “Regulators and taxes can make doing business in New Jersey a real chore, even for a business doing all the right things. It’s burdensome and holds my company back. We’re considering expanding soon and we’ll have to take a close eye at whether we should do it here or somewhere where doing business should be cheaper.”
Below: Congressman Josh Gottheimer (NJ-5) and General A&E President John Baker review manufacturing equipment.