| TRENTON, N.J. – With New Jersey leading the nation in outbound moves and IRS data confirming billions in lost income, Assemblyman Christopher DePhillips says the exodus is a direct result of high taxes and unchecked government spending. He’s demanding immediate action to reverse the trend.
“Instead of addressing wasteful spending and ensuring basic services like NJ Transit are run efficiently, Democrats are doubling down on higher taxes and bigger budgets,” DePhillips (R-Bergen) said. “This is exactly why New Jersey residents are packing up and leaving in droves.”
A recent United Van Lines study revealed that 67% of New Jersey movers left the state in 2024, the highest rate in the nation and a 2% increase from the previous year.
Supporting these findings, IRS data from July shows the state lost $5.27 billion in adjusted income between 2021 and 2022, as 37,408 net residents with an average adjusted income of $140,879 abandoned the Garden State. The outmigration has been consistent annually.
“Year after year, the data tells the same story – New Jersey’s crushing tax burden and bloated spending are driving families and businesses out,” added DePhillips. “This is about affordability. Lower taxes mean more jobs, higher take-home pay and an opportunity for our state to thrive instead of bleed residents and revenue.”
DePhillips, who successfully doubled the angel investor tax credit in 2019, is pushing to increase it again to strengthen New Jersey’s innovation economy. His bill (A2365), which raises the credit from 20% to 35% for investments in emerging technology businesses, was unanimously approved in the Assembly Science, Innovation and Technology Committee in June.
DePhillips is also advocating for lower corporate business taxes to spur economic growth. His bill (A1331) proposes reducing the tax rate to 2.5% over four years, matching North Carolina’s model, which drove the nation’s largest economic growth following similar reforms. For small businesses earning under $100,000, the rate would drop from 7% to 2.5% within two years.
“Democrats’ tax-and-spend policies have created a dangerous trend that will sink New Jersey and taxpayers financially,” DePhillips said. “Lowering taxes and encouraging innovation is how we stop the exodus and jumpstart economic growth. New Jersey families deserve better than skyrocketing costs and shrinking opportunities.”
State spending has ballooned by 63% since 2018, while taxes have increased 51%. New Jersey’s budget deficit could be as high as $4.5 billion heading into the next budget.
Meanwhile, federal data underscores just how dire the affordability crisis has become, with households earning $97,800 in New Jersey now considered low-income.
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