New Jersey High-Tech Capital Gains Tax Proposal
With some of the highest tax rates for every category in the country - sales, property, income, capital gain, it's understandable why many companies are moving out of New Jersey, while new companies are deciding to make New York, Pennsylvania or any other states their home.
After working and living in several of the biggest tech centers in the USA (Seattle, Silicon Valley, NYC, Boston), I have learned that state sponsored business / tax friendly regulation can have a big impact on new company formations.
My proposal is simple. If you start or move your high-tech company to New Jersey, and you have an exit event down the road (sell the company, go IPO, etc), then you do not pay any state level capital gains taxes on your share of the sale.
This simple proposal will motivate startups in New York, Connecticut, Pennsylvania and other surrounding states to relocate to New Jersey. While this may look like a tax cut, this proposal will actually generate more tax revenue and create jobs for the state.
When startup founders decide to make New Jersey their home, they will still pay income taxes, property taxes, sales taxes, etc. It's just that we reward them with no capital gains tax when they exit / sell their business.
The startups that relocate to New Jersey will bring thousands of high-tech jobs with them and millions in new tax revenue.
This proposal is simple and it creates a reward for companies the succeed in New Jersey.