New Jersey Playbook
BY MATT FRIEDMAN
It was one thing to give people a day and a half to digest a dense, nearly 220-page bill that would authorize up to $11.5 billion in corporate tax breaks before holding a committee hearing on it.

But lawmakers took opaqueness to a new level Friday by inserting 140 pages of amendments at that committee hearing and expanding the size of the program by a couple billion dollars.

Today, the Legislature is scheduled to vote on the bill.Gov. Phil Murphy and EDA CEO Tim Sullivan have tried to reassure people that this bill has safeguards against the abuses that plagued the last massive tax break program. And the Murphy administration last night rolled out supportive quotes from a bunch of people. But the rushed legislative process speaks much louder than reassurances or statements of support. There is no deadline New Jersey is up against to pass such a massive bill, but they’re acting as if there is.

Murphy in 2019 launched an investigation that uncovered massive special interest self-dealing and a culture of abuse that accompanied previous tax breaks. For years, the champions of these incentive programs have said the state doesn’t spend any money because it’s revenue it wouldn’t otherwise have. But we now know New Jersey was left giving many companies tax breaks, which they most often sold to other companies, to move to places they already planned to move to, or to stay in places they never really planned to leave. That was revenue the state would have otherwise had as we’re facing down a pandemic that’s cut into tax revenue. A pandemic that led the governor to push $4.5 billion in borrowing.

If this program is as good as they say it is, they could try letting people examine it. But apparently they’re pretty confident Democrats in the Legislature are going to “get to yes” on it.

Related news stories:
After scandal and delays, massive N.J. corporate tax credit bill gets major push, with scant scrutiny
Massive $11.5B business tax break bill quickly advanced by N.J. lawmakers, set for full vote Monday

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