POLISTINA AND AMODEO: LOSS OF TWO MORE HIGH PROFILE COMPANIES A TESTAMENT TO CORZINE'S FAILED LEADERSHIP

As two more high-profile New Jersey companies prepare to close shop and relocate to other states in July, Assembly Republican members Vince Polistina and John Amodeo today said they expect the exodus of businesses from New Jersey to continue following Governor Jon Corzine’s signing of his latest budget yesterday that will increase taxes by another $1.2 billion, extend the state’s Corporation Business Tax (CBT), and hike employer payroll taxes.

“For the past few days Democrats have heaped praise on themselves and Governor Corzine for the passage and signing of what they call a[n] ‘historic’ budget,” said Polistina, R-Atlantic. “I’m not sure who they are trying to convince more – the public or themselves. But today’s news that we will lose two more big name businesses, and along with them, another 225 jobs, should serve as a reality check. It confirms that their claims are nothing more than election-year political rhetoric.”

NJBiz Journal Publications today reported that E-Trade Financial will close its 171-person Jersey City customer service unit July 5 and relocate to Utah and Georgia while Archer Daniels Midland Co., a Glassboro cocoa facility, will transfer production to Hazelton, Pa., July 31, resulting in another 54 lost jobs.

A Rutgers University economics professor attributes the operation shifts to the state’s heavy tax burden, saying “New Jersey is a high-tax state, and that can drive companies away.” He noted that the combination of high income taxes, property taxes and auto insurance rates “can influence decision-makers.”

“While this latest news isn’t surprising, it is, nonetheless, disappointing because it didn’t have to happen,” said Amodeo, R-Atlantic. “New Jersey has carried the infamous title of least friendly business climate and highest tax rate state for several years now as our business community has languished under the failed leadership of Governor Corzine and legislative Democrats.

“For all their talk about us ‘turning the corner’ and being ‘ahead of the curve,’ the truth of the matter is our economy and taxpayers are now suffering the consequences of the administration's failure to govern prudently and responsibly. Unfortunately, we can expect this trend to continue for at least another year as there is no end in sight to this state’s onerous tax burden under the democrat’s newest spending plan.”

Polistina and Amodeo pointed out that Governor Corzine’s claim that critics have offered “no real alternative” to his budget is “absolutely false,” noting that for the last four years, Assembly Republicans have repeatedly offered to work with the governor, but were ignored.

“Governor Corzine’s rhetoric that he was open to listen to alternative plans was just a political sound bite,” said Polistina. “Republicans developed and drafted a sound, viable economic reform and growth plan with the hope it would lay the groundwork for a working relationship with this administration. Not only was it outright dismissed, but we weren’t even invited to the table.”