(TRENTON) - Legislation Assembly Democrats Joseph Egan, Troy Singleton and Craig J. Coughlin sponsored to help businesses avoid a pending tax increase was released Monday by an Assembly panel.
The bill (A-3675-4112) reduces the unemployment insurance tax rates that would be imposed on employers during fiscal year 2014. Under current law, employers would be hit with a 10 percent surcharge on July 1, but the bill reduces the tax burden on employers by preventing the surcharge from taking effect in fiscal year 2014.
The change would save employers $300 million during next fiscal year.
"We need to do the right thing to ensure businesses are able to continue recovering from this tough economy and can create the jobs sorely needed by working class residents," said Egan (D-Middlesex/Somerset), the Assembly Labor Committee chairman. "This is a reasonable step that helps avoid a painful tax increase and puts the focus on continued job creation efforts."
"This is not the time to be hitting employers with an additional surcharge," said Singleton (D-Burlington). "With unemployment hovering around 9 percent and New Jersey's economy ranking 47th in the nation in economic growth, we need to do more to help businesses create jobs, not penalize them with additional taxes. This is the right thing to do for our businesses and hard-working families."
"New Jersey's economy is in a fragile position, with high unemployment and stagnant growth compared not only to our neighbors, but to the rest of the nation," said Coughlin (D-Middlesex). "The last thing businesses need is an additional tax hit. This is the responsible thing to do to ensure our businesses can continue focusing on job creation and economic development."
The bill was released by the Assembly Labor Committee.