Tom Bracken, President & CEO, New Jersey Chamber of Commerce
Tom Bracken, president and CEO of the New Jersey Chamber of Commerce, spoke with Invest: about creating a new economic council with business leaders and the governor’s office, and how the council plans to address challenges facing the business community. He also touched on what makes the state attractive for business, and why he’s optimistic for the future of the state’s economy.
What have been some recent efforts of the chamber to promote economic growth and a dynamic community in New Jersey?
Everything we do is to promote economic growth. We promote legislation and try to prevent negative legislation. We host events that highlight the benefits of the state of New Jersey and why businesses should come here, stay here, and grow here. We host several large events every year where the leaders of the state get together to talk about the issues impacting our state. We are in the midst of working with our nine gubernatorial candidates to get them to be focused on the need for more economic development, supporting the business community, relieving the regulatory burden put on business, and tax relief.
Gov. Phil Murphy has spoken about his commitment to lowering property taxes. What does that mean for New Jersey?
That would be great if it happens, but words and actions are different. There’s no property tax relief at all for businesses. The business community in New Jersey pays 50% of all of the property taxes in the state, and all of the property tax relief programs that have already been instituted and talked about, are all for the consumer marketplace. There is nothing for business. Hearing about real estate tax relief doesn’t impact us at all because there is nothing forthcoming for the business community.
What possibilities do you see from the newly created Economic Council, and what does it mean for the chamber and its members?
The Economic Council was created in October 2024. It is the first time in the history of New Jersey that anything like that has been put in place. Since the governor took office seven years ago, we have been asking for that kind of forum to talk about economic issues with the governor. After seven years, I was asked by the governor’s office to put together a white paper on what an economic council would look like. I gave that to them, and the governor took most of our suggestions and created the Economic Council last October through an executive order. It mandates that every quarter, the business community and the governor’s office meet and talk about issues impacting our economy and the business community. It’s meant to focus on helping the businesses that are here to feel more comfortable, to want to stay here and grow here. Eight private sector members of the Economic Council will join the public sector side. I was honored to be one of them. This is a golden opportunity for New Jersey to make progress as a collective group with government and business to get things done, talk about issues, move our economy forward, and achieve the tremendous potential our state has.
How do you see the corporate transit fee influencing the business landscape in New Jersey?
It came on the heels of a reduction of the corporate business tax surcharge. The elimination of the surcharge reduced our corporate tax rate from 11.5% to 9%. Within 30 days, the corporate transit fee was instituted, which essentially moved the tax rate right back to 11.5%. It was not well received by the business community, and less well received by the specific businesses impacted by this. It sends the wrong message to the outside world. We were hoping with the surcharge being eliminated that we could say we’re in the process of reducing the tax structure of New Jersey to make us more competitive. It continues to make our challenge of being more competitive and affordable even more difficult.
What role will the chamber have in finding solutions that support both infrastructure funding and business growth?
The election of President Donald Trump brought an overwhelming message that people wanted change, and they wanted more focus on the economy. In contrast, the governor’s State of the State address was nothing other than business as usual. No real change there. One of the first pieces of legislation that the governor and legislature proposed was to increase the amount of money that people get on paid leave. This is geared toward state workers, who are now proposed to get 100% of their salary as paid family leave, as opposed to the 80% they used to get. It flies right in the face of change and economic development because that adds more burden to the taxpayers and the state of New Jersey, and makes us less affordable. Two major issues came through loud and clear in November, and so far, neither of those have been embraced in New Jersey. We hope the Economic Council will be the beginning of embracing a focus on the economy.
Where do you see the greatest opportunities for the area’s economic development right now?
If you look at the demographics, the assets we possess, and our location, New Jersey is a Top 5 state in the country to do business. We have a quality of life and education that is the envy of most states. We have the best location in the country for business. We have a great infrastructure that allows people, goods, and services to be moved efficiently. We have all the ingredients to have a booming economy, but it’s not booming. We need to embrace our assets and the demographics we have and start to get rid of some of the hurdles in place.
What is your outlook for the chamber and New Jersey’s economy for the next two to three years?
I hope the Economic Council will help drive attention to New Jersey. I’m cautiously optimistic that we’re going to get more focus on our economy and the business community, which would be music to the ears of all of us who are engaged in the business community. Our new president has put forth many things that are beneficial to business and will assist business nationwide, and I hope there’s a peripheral benefit to us based on those initiatives. A combination of the new president’s economic initiatives, a new governor, and the Economic Council could all come together collectively. We have great opportunities. For the next year or two, I’m cautiously optimistic that things will be better than they are now.
