SMALL BUSINESS CALLS ON GOVERNOR TO SHOW LEADERSHIP NOT RHETORIC DURING TOMORROW'S BUDGET ADDRESS
TRENTON (February 23, 2015): On the eve of Governor Chris Christie’s budget address, The National Federation of Independent Business (NFIB) is hoping to see leadership and diplomacy reign inside New Jersey’s Assembly chamber. It is widely anticipated that the Governor will lay out additional pension reforms to offset the economically toxic pension payment system that the state currently suffers under, however it remains to be seen if he will receive bipartisan support. Small business is hoping to hear that New Jersey’s pension system will soon be handled more like a 401k plan.
“In the past, we have been happy to support pension reform. What the Governor did during his first term was vital to stabilizing our economy however it is time to take it a step further and have New Jersey’s public pensions resemble a private sector savings plan.” Said NIFB New Jersey State Director Laurie Ehlbeck. “Our small business owners have no pension plans for a very simple reason, they are not fiscally feasible for anyone, and that includes the state. We cannot continue to operate within a system that everyone agrees is broken.”
94 cents of every dollar of revenue in the state of New Jersey is spent on pension and benefits, leaving the Governor and Legislature alike with little room for infrastructure improvement or tax relief.
“I’ve heard from many members that they are genuinely concerned there will be a proposal to increase the gas tax tomorrow” Continued Ehlbeck, “Our hope is always to reduce taxes dramatically in our state, the gas tax is one of few taxes in New Jersey that is not out of control. If it is going to be increased, it is imperative that that money be specifically ear marked for infrastructure improvements so that future administrations cannot exploit the funds and fail to repair our crumbling roads and bridges.”
The inheritance tax has often been cited as a bargaining chip for the Governor to use as a means to compromise with Republicans who have been calling for a decrease in the tax that very few states in the country still have. Small business is certainly supportive of decreasing, if not abolishing the inheritance tax however, it remains to be seen if the benefits of losing the inheritance tax could outweigh the costs of increasing the gas tax for the thousands of NFIB members across the state.
