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HOST: The federal government isn’t the only one facing difficult budget decisions. A lot of states are in hot financial water as well. Illinois is in particularly bad shape. To close its $15 billion budget gap, the state has raised corporate taxes by more than 50 percent. Now New Jersey is hoping to cash in on that — the Garden State started an ad campaign to steal fed-up businesses from Illinois.
Janet Babin reports.
JANET BABIN: New Jersey’s broadcast ads throw some not-so-subtle barbs Illinois’ way.
ADVERTISEMENT: Have you had enough of Illinois’ outrageous tax increases that stifle businesses and cost jobs? Then move your business to New Jersey.
New Jersey’s corporate tax rate is 0.5 percent lower than Illinois’ new higher rate. But political adviser Charles Gabriel at Capital Alpha Partners says you also have to consider the Garden State’s income tax rate.
CHARLES GABRIEL: Spin lies in the hands of the advertiser. They can gloss over the fact that they still have a higher personal income tax rate than the state of Illinois.
According to the Tax Foundation, people who make more than $40,000 a year will pay higher income taxes in New Jersey than in Illinois.
The states’ two governors are lobbing insults at each other through the media. And Governor Christie heads to Illinois next week to make his case to businesses in person.
I’m Janet Babin for Marketplace.
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