Our Point of View

Corruption costs crush honest business ownersENTREPRENEURS HAVE long lambasted New Jersey as a poor place to do business because of high taxes and overly burdensome regulations. Now, add the high cost of corruption to the list.

As the state struggles to compete with its neighbors to attract new companies, the recent arrests of 44 people, including three mayors and two assemblymen, have laid bare just one more reason new businesses aren’t flocking to New Jersey.

One estimate for corruption’s price tag in New Jersey is $1 billion (See story on Page 1). And the FBI agent who led the latest sting believes corruption adds a 20 percent markup to the cost of doing business nationally, with the Garden State likely surpassing that average.

Another grim stat: New Jersey ranks eighth-highest on a U.S. Department of Justice tally of public officials convicted of corruption from 1998 to 2007.

Rutgers University economics professor Ira Gang cites research that as taxes increase, the incentive to evade them also goes up.

Of course, taxes are on the rise in the state now, especially for businesses. Will the recent high-profile arrests dissuade New Jersey residents from taking bribes and laundering money? Or will the continuing crush of high taxes prompt more back-alley deals and ploys to get a piece of the pie?

As for those of us tied to the state because of business and family, we’ll continue to keep an eye on our BlackBerrys and TVs to see when the next perp walk may occur.