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Let the corporate vagabonds leaveWe encourage readers to write letters concerning New Jersey business issues. Please keep letters to fewer than 400 words. We reserve the right to edit letters and reproduce them at njbiz.com. Please sign your name and include a telephone number. List your town, or if you prefer, your title and company’s name. Send letters to

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Let the corporate vagabonds leave

I disagree with your portrayal of the state’s level of taxation and number of workers (“Shrinking government’s payroll critical to state,” Political Exchange, Aug. 17).

New Jersey has a high tax rate and large number of workers because it is also the second-most prosperous state, with one of the highest standards of living. We are also the most congested state with the highest level of population. Our people are blessed to be between the three hubs of commerce of New York, Philadelphia and the Washington, D.C., corridor.

To expect a skeletal state, county and local government administration is ridiculous. Our population demands a high standard of regulation and a well-paid, professional working class to perform those duties.

What has this “race to the bottom” promoted by corporate America created? States desperate for jobs with tax giveaway schemes that buy them temporary gains.

Let those corporate vagabonds head south of New Jersey. Let them drift off to places of ever lower taxation and regulation. Their business model will never be satisfied here.

Our schools and our neighborhoods are envied nationally and internationally. We will continue to compete with others for business. But only by deepening and widening what’s best about New Jersey: our incredible infrastructure, diverse markets and talented, educated young people.

Michael A. Bowes

Haworth

Congress must watch tax reform

As American businesses struggle to recover from the recession, Congress will soon consider changes to the tax code that could seriously undermine any recovery. While we applaud lawmakers for recognizing that aspects of our federal tax system are not functioning, we urge Congress to be careful with a piecemeal approach to tax reform and to reject the proposed repeal of deferral, “check-the-box” and foreign tax credits for American companies with operations abroad.

These three tax provisions allow American companies to structure their taxes in such a manner that they can compete effectively with foreign rivals. This is important because in some countries, like France and China, homegrown companies pay little or no tax; these tax provisions give American companies a level playing field in those markets. Having robust American businesses abroad benefits all of us — every dollar invested overseas generates more than $3.50 here in the United States.

The worldwide American companies that would be hurt by repealing these tax provisions are the backbone of our economy. For every American company with overseas operations, there are hundreds of small businesses that rely on larger companies for their survival. From dry cleaners and sandwich shops, to car services and convenience stores, small businesses around our state depend on big businesses to fuel their success. Worldwide, American companies also give millions of dollars and volunteer countless hours to their communities.

Here in New Jersey, major employers like Honeywell, DuPont, and Corning would all be adversely affected by the repeal of these tax provisions. In a worst-case scenario, some companies could be forced to move all of their operations overseas, stripping the U.S. tax-base of high-wage jobs and robbing this country of intellectual capital and the kind of entrepreneurial opportunities that make this country great.

Some proponents of this tax increase have referred to this proposal as “restoring fairness” and “closing a loophole,” but these characterizations are incredibly misleading. The tax increase that Congress is pondering would amount to more than $200 billion levied against American companies, and would only help foreign competitors.

We appreciate Congress’ interest in reforming the tax code. However, we believe that a better approach to reform starts with a full study of the current tax code and the development of broad recommendations for reform that help businesses, workers, and our communities thrive. We urge New Jersey’s Congressional delegation to support fundamental tax reform and reject those proposals that would harm the very companies we are relying on to lift us out of these difficult economic times.

Hal Bozarth, executive director

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