Corzine Finally Found Something to Cut!

Scott Goldstein from NJBIZ today brings us the story of the Governor cutting back business incentives for media companies passed in the legislature last year. From his article NBC Watches as Corzine Cuts Tax Credits:

The bill (S-2526), authorizing $20 million in tax credits, overwhelmingly passed in the Legislature last spring, but was reduced earlier this month to $5 million by Gov. Jon Corzine, who says the state is in no fiscal condition to give more cuts.

So the Governor sees the need to cut $15 million of the credit out. Not bad although the people of Englewood Cliffs who were counting on luring NBC may be a bit nervous right now. As credits go, this one seems pretty benign and unfortunately for the state, incentives like these will be given by other states and cities to lure business. I remember years ago when I lived in Texas, the Dallas area was willing to offer anything to any large company to move to the area. Consequently, Dallas has transitioned its business community from Banking and Oil to a multi-faceted telecom, retail, services and technology marketplace very well suited to the future economic marketplace.

But why is this Governor so agressive at cutting this program while spending 274 million on a downpayment for stem cell research and development (NOT authorized by the Citizens of NJ) while promising another 400 that the public rejected by referendum?

The tax credit initiative was created by a popular bi-partison vote in the legislature says Goldstein:

“If there ever was a case for an override, this would be the one,” said Sen. Paul Sarlo (D-Bergen), a sponsor of the bill that passed 37-0 in the Senate and 71-8 with one abstention in the Assembly.


Media companies actually make profits that can be taxed by the state. R&D operations funded by the state don't. Interesting fiscal conservatism.

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