WASHINGTON, D.C. – June 23, 2015 – (RealEstateRama) — New Jersey Business & Industry Association President and CEO Michele Siekerka today urged the Legislature to reject the so-called millionaire’s tax at a press conference attended by statewide business organizations and state legislators.
According to Siekerka, “The millionaire’s tax is not so much a tax on the ‘wealthy’ as it is another income tax increase on small business. And it’s one they cannot afford.”
She pointed out that business income for partnerships, LLCs, S-corporations and others flows through their owners’ personal income tax returns, hence “the ‘millionaire’s tax’ will be raising the rates for those small businesses that would otherwise use that money to reinvest back into their business,” Siekerka said. “A small business does not a millionaire make.”
“New Jersey already has among the highest taxes and most onerous mandates in the nation,” Siekerka said. “In addition to the high income, property, corporate, estate and inheritance taxes, New Jersey businesses also face a slew of mandates, including a higher minimum wage and costs associated with the Affordable Care Act.
“All of these taxes and mandates hurt the people we depend on to create jobs,” Siekerka said. “The taxand-mandate philosophy is overwhelming the state’s economic climate and making it difficult for our state to have the growth we would like to see. Taxes and mandates create a business climate that is difficult for employers.
“Our members need the confidence and predictability that will encourage them to invest in their businesses and create jobs,” Siekerka said. “After a long recession, employers are cautiously optimistic about the state’s economy; businesses have started hiring again and the state is seeing good job growth. A big tax increase on small business now could put the brakes on the modest economic growth we have seen, and make businesses question their commitment to the state.”
