A New Jersey Policy Perspective official is pointing to an interstate corporate subsidy ceasefire between two midwestern states as a possible solution to New Jersey businesses threatening relocation in exchange for tax credits.
The governors of Missouri and Kansas have agreed to end the economic border war that used tax incentives to entice companies to cross state lines in the highly competitive, bi-state Kansas City metro region.
“This is an incredible idea that should be replicated,” NJPP staffer Louis DiPaolo said on Twitter Wednesday night. “If New Jersey entered a ceasefire with New York and Pennsylvania, all three states would benefit by ending this costly race to the bottom.”
Three legislators responded to DiPaolo that the idea had some merit.
“This makes sense and is worthy exploring,” tweeted Senate Majority Leader Loretta Weinberg (D-Teaneck). “Small thing: we share TV market. We could do joint ads for things like public health ads etc. So many ideas should be reviewed.”
State Sen. Joseph Cryan (D-Union) said he “couldn’t agree more.”
State Sen. Troy Singleton (D-Delran) also seemed supportive of exploring the ceasefire proposal.
“An interstate compact makes so much sense,” Rob Duffey, a spokesman for the Working Families Party, said on Twitter. “And there’s a whole new class of progressive state senators the (New York Working Families Party) helped to elect last year. I bet they’d love to talk about it.”
Another public policy group, Garden State Initiative, said that New York Gov Andrew Cuomo “with a corporate tax rate 50% less than that of New Jersey, could be heard laughing at the idea all the way from Albany.”