Reality Check: Affordability Cannot Mean More Taxes

At Issue

By Christopher Emigholz, NJBIA Chief Government Affairs Officer On Jan 5, 2026

“Affordability.” It’s the one word we heard nonstop during this past election cycle – in New Jersey, New York City, and all over our nation – as we continue reeling from excessive inflation.

Every candidate claimed it was their mission. Every campaign mailed out glossy flyers pledging to deliver it or talked about it in their commercials. And yet, affordability means vastly different things to different elected officials.

Too often nonsensically lurking behind the affordability refrain is the claim by some elected officials that higher taxes will make things more affordable. A prime example is just across the Hudson River where we heard that somehow billions of dollars in new taxes could make New York City more affordable. Where do those tax revenues come from, and what happens after some taxpayers pay those higher taxes? More taxes will never lead to affordability.

You cannot make life more affordable by making everything more expensive to operate. Businesses do not magically absorb higher taxes; they instead respond to them in our free market by cutting back, raising prices, and/or choosing to create well-paying jobs somewhere else. Residents feel it similarly, especially in a high-cost state like New Jersey, where investment and competitiveness diminish. In both cases, life becomes less affordable for all.

In New Jersey, we already pay the highest corporate taxes in the nation, the country’s highest property taxes, among the top income tax rates and a higher-than-average state sales tax. Layer our complex regulatory system on top of those high taxes, and you can see where our affordability problems emanate from. So, the idea that the pathway to affordability runs through even higher taxes has never aligned with New Jersey’s economic reality. If it worked, the Garden State would already be the most affordable state in America.

Affordability comes from economic growth enabling people to afford more and efficiencies that mean they may need to pay less. Whether it be pro-growth investments in workforce development, infrastructure and innovation or reforms to make government more disciplined, efficient and accountable, these are the clear paths toward affordability.

Contrasting with the recent mayoral campaign in New York City, incoming New Jersey Governor Sherrill did not campaign on raising taxes, and it was refreshing to see a campaign that did not lean on the tired “pay your fair share” slogan. As we welcome our new governor who will be leading New Jersey at a time when our state is just too expensive to be competitive, we hope the focus is true affordability and not more taxes which New Jersey just cannot afford.

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