CIANJ Opposes Proposed $400 Million Payroll Tax Increase, 03/23/2009

Dear Friends,   Stop what you’re doing, and take a moment to click here to tell your legislators not to impose a $400 million tax increase on New Jersey’s businesses.   The governor’s proposed budget includes a payroll tax increase on New Jersey companies that would equal about $90 for each employee at a firm to pay for a shortfall in the state’s Unemployment Insurance (UI) fund. That shortfall is due to the recession and previous raids of the money employers and employees paid into Unemployment Insurance. Now, they are asking companies to pay twice for the same employee benefit.   The UI fund is filled by a tax on companies, who pay for about 88% of the fund, and a tax on workers. If the fund misses its minimum threshold, then a tax increase is triggered on employers. The economic downturn has put greater demands on the fund, and it will miss its required minimum without a cash infusion from the state.   Since 1993, more than $4.7 billion has been raided from the UI fund, which prevented it from building a surplus for inevitable weak economic cycles. Had those raids not happened, the nearing tax increase would not be necessary.   Raising your taxes during a recession will not improve New Jersey’s economy. That is why CIANJ is asking all its members to contact their legislators immediately using our grassroots system. The higher tax will reverberate across the economy, putting pressure on salaries and prices.    Last year, Governor Corzine and the legislature took steps necessary to avoid a tax increase, and we applauded them for it. However, if a tax increase was a bad idea last year, it is even worse this year. Please use our system to contact your legislator immediately.   Sincerely     John Galandak President Commerce and Industry Association of New Jersey   P.S. We have launched a new website – www.DontTaxJerseyJobs.org to keep you updated and to spread our crucial message beyond CIANJ membership. If you have any questions about the proposed tax increase, please e-mail ptyahla[nospam]cianj.org or call 201.368.2100.