NJ small-business owner says Murphy must bring back the tax on Big Business

In the aftermath of Gov. Phil Murphy’s budget address this week, Big Business and its lobbyists are lining up to broadcast how they deserve their $1 billion corporate tax cut, claiming that this will make the state more “business-friendly.”

But as a small-business owner, I can tell you that a tax cut for Amazon and Walmart comes at the expense of businesses like mine. Businesses in New Jersey need strong infrastructure, education and public transit funding to create the environment for strong economic growth, not more giveaways to the world’s most profitable corporations. If the governor truly intends his budget to help build and support small and midsize businesses in New Jersey, it should include a reinstatement of the corporate surtax.

The $1 billion tax cut to multinational corporations is often pitched as “pro-business,” as if it were a universal truth. But when you look at the numbers, a whopping 99.6% of New Jersey’s small businesses would not see a dime. This corporate tax cut on profits over $1 million would only benefit roughly 2,500 corporations — including many international chains that aren’t headquartered here — while nearly 1 million New Jersey businesses would get nothing. As the governor himself put it, a pizzeria is not making a million dollars a year in profits.

The disconnect between supposedly “pro-business” policies that would only enrich the already-wealthy and measures that would actually help small businesses and the communities they serve is why I’m an active member of Main Street Alliance, a national organization that organizes small-business owners to shape local, state and national policies. As small-business owners, we recognize that a thriving economy with good jobs needs to work for everyone, not just the wealthy and well-connected.

An outsized focus on corporate taxes ignores what actually makes New Jersey a business-friendly state. As the state’s Economic Development Authority has frequently mentioned, businesses start up, grow and thrive because of the state’s highly skilled and educated workforce, its robust transit system, and its lifestyle factors like high-quality schools, recreation and access to vibrant communities and culture. New Jersey also benefits from its proximity to New York City and Philadelphia, a geographic and economic advantage that will never go away. Businesses do not decide where to put their site based on how much ExxonMobil or Citibank has to pay in taxes.

I know this firsthand: When our business was forced to relocate in 2013, we decided on our present location in Kenilworth for the very reasons we support public investment. Nearby public transportation to New York, proximity to Newark, Elizabeth and major highways, convenience for our employees, and the availability of an industrial property that fit our needs almost perfectly made our choice obvious. As everyone who starts and sustains a business knows, the decision to make the investment of our lives wasn't simple. It involved considerable risk, a risk we were willing to take because despite what some might say, New Jersey is a great place to do business, to raise a family and to enjoy life. And as long as we continue to invest in it, it will stay that way.

A big tax cut for big corporations runs counter to these investments. At the same time that NJ Transit will face a billion-dollar deficit, our state will be handing a billion dollars to the corporations profiting from our infrastructure instead.

There is an illusion that what’s good for Big Business is good for small business, too. But just as trickle-down economics has failed for individuals, it has failed small businesses as well.

Handing big multinationals additional tax advantages leaves the small businesses with less ability to compete. And unlike the small businesses whose profits stay here in the state and whose owners are active community members, Google and Facebook eagerly ship their profits overseas to avoid paying their fair share. When Big Business doesn’t pay up, it’s small businesses that end up footing the bill.

When political leaders and lobbyists frame corporate tax cuts as “pro-business,” remember to ask which businesses they are helping and which are being hurt. What’s good for Jeff Bezos isn’t necessarily good for the 1 million small businesses and their employees who call New Jersey home.

If the governor and Legislature want a budget that supports businesses like mine, it should include more public investment and infrastructure and should reverse unfair tax cuts for corporate giants to help pay for those investments.

Kelly Conklin is founder and co‐owner of Foley Waite LLC in Kenilworth. Conklin is also a founding member and board chair of Main Street Alliance.

This article originally appeared on NorthJersey.com: Phil Murphy NJ budget must include new tax for big businesses