(TRENTON) - Legislation Assembly Democrats Tim Eustace, Troy Singleton, Connie Wagner, Joseph Egan and Craig J. Coughlin sponsored to help businesses avoid a pending tax increase was signed into law on Friday.
The law (A-4112/3675) reduces the unemployment insurance tax rates that would have been imposed on employers during fiscal year 2014. Under former law, employers would have been hit with a 10 percent surcharge on July 1, but the change reduces the tax burden on employers by preventing the surcharge from taking effect in fiscal year 2014, which started Monday.
"This will save employers $300 million during this fiscal year, allowing them at this difficult time to focus on creating jobs and economic development for our state and its workers," said Eustace (D-Bergen/Passaic). "Creating a good environment for job creation in New Jersey is a top priority, and this is essential ingredient to accomplish that goal."
"Job creation must be the focus," said Wagner (D-Bergen/Passaic). "We need to focus on helping hard-working New Jersey families get back on their feet, and this change will give them a better chance of doing so by enabling job creation and economic growth."
"This is not the time to be hitting employers with an additional surcharge," said Singleton (D-Burlington). "With high unemployment 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."
"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."
"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."