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CPA Poll Finds State Economy Stuck in Neutral

By Ralph Albert Thomas, CPA (DC), CGMA posted 12-02-2014 12:08 PM

  

The third annual survey of CPAs commissioned by the New Jersey Society of Certified Public Accountants (NJSCPA) and the Pennsylvania Institute of Certified Public Accountants (PICPA) finds the economy in a relative holding pattern among respondents when it comes to state economic indicators.

Nearly 9 in 10 respondents (87 percent) believe that NJ’s tax structure is worse than most states. It’s not surprising, then, that they cite high taxes as the number one reason (35 percent) for hindering future economic growth in NJ and the number two reason (33 percent) contributing to the state’s high unemployment rate.

As for NJ respondents’ number one recommendation to expand the state’s economy and grow jobs: reduce property taxes (35 percent); reduce the corporate business tax (20 percent); and reform estate and inheritance taxes (16 percent).

  • NJ Estate and Inheritance Taxes -- With regard to estate and inheritance taxes, a whopping 83 percent of NJ respondents feel these taxes have prompted clients to leave the state. And, astoundingly, 71 percent have actually advised clients to relocate to another state due to NJ’s estate and inheritance taxes. A strong majority (84 percent) think these taxes impact the state’s middle class just as much as the affluent.

  • Gasoline Tax – When asked if New Jersey’s gas tax should be raised to benefit the Transportation Trust Fund, the numbers were pretty evenly split: 56 percent were in favor of an increase, while 44 percent were not.

  • Millionaires’ Tax – Approximately two-thirds of respondents (66 percent) opposed raising the marginal tax rate on incomes over $1 million, while 34 percent were in favor of an increase. The main reason for those in favor of an increase (63 percent) cited the ability of the state’s wealthiest to afford an increase. The key points of those who oppose a tax increase are 63 percent feel it will prompt wealthy residents and businesses to leave the state; 61 percent believe NJ needs less government, not more taxes; and 60 percent think Garden State residents are already the highest taxed in the nation.

About the Study
The Franklin and Marshall College Center for Opinion Research University, on behalf of the NJSCPA and the PICPA, surveyed high-level CPAs in public accounting in New Jersey and Pennsylvania September through November 2014. There were 414 total respondents in NJ.

For additional information, visit http://www.njscpa.org/news/article/2014/11/24/cpa-poll-finds-national-state-economies-stuck-in-neutral.

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