Trenton (January 14, 2014) – The National Federation of Independent Business (NFIB) today said small businesses badly need property tax relief and urged lawmakers to work with Governor Christie to reform the way local governments operate and spend money.
“The property tax is the single biggest tax burden for most small businesses,” said NFIB State Director Laurie Ehlbeck. “The reforms that they’ve already enacted can’t work unless we encourage local governments to operate more efficiently. That means overhauling the way they are structured and giving them more autonomy to control their own spending.”
The Governor proposed a battery of reforms, including a permanent cap on interest arbitration, consolidation of services between municipalities and the elimination of state mandates that drive up expenses for towns and counties and limit their fiscal options.
“A big part of the problem in New Jersey is that there are too many local government entities with overlapping functions,” said Ehlbeck. “To make matters worse, there’s a heavy mesh of state mandates that prevent local officials from making sensible arrangements with their counterparts that would reduce the cost government and ultimately permit lower taxes.”
The Governor hinted in his speech that he would also announce state tax cuts as part his budget address in February. His goal, he suggested, is to propose spending cuts that would offset lower taxes.
“That’s exactly the right way to balance a budget and provide the tax relief that we need,” said Ehlbeck. “Small businesses pay the same taxes that families pay in New Jersey so we’re very eager to hear the Governor’s proposal.”
Ehlbeck noted that New Jersey ranks at or near the bottom of national business surveys because of its high taxes. Its property taxes are highest in the country. Its income tax is among the highest and so is the state sales tax.
“We’re uncompetitive no matter how you slice it,” said Ehlbeck. “That has to change. The only way to grow the economy and create more jobs is to let people keep more of their own money.”
To reach Laurie, please contact her directly. You may also contact Sr. Regional Media Manager Jack Mozloom at 609-462-5610 or email@example.com.
To learn more about NFIB, please visit www.nfib.com.