NFIB was pleased to see the exclusion of any new taxes, tax increases or fees in the SFY2022 budget. After the pandemic, New Jersey small businesses are struggling to return to normalcy while still facing the economic impact of the closure. Tax increases would have added to the burden already felt by businesses as the economy recovers.
NFIB advocated for unemployment trust fund relief, but sadly the budget did not include any funds to replenish the state unemployment trust fund. A phased-in payroll tax increase that could have been prevented by the legislature will hit small businesses on July 1.
The $46.5 billion signed budget does provide some assistance to Main Street. There is $135 million of COVID-19 relief for businesses, plus $235 million proposed in the Governor’s original budget, as well as $100 million to expand childcare so residents can return to work. The Economic Development Authority website, https://business.nj.gov/covid/small-business-emergency-assistance-grant-program will be accepting grant application in July.
NFIB has long advocated for steps to be taken to address long term fiscal issues. It is prudent planning that an additional $505 million was included in the legislature’s budget, which is in addition to the Governor’s originally proposed $6.4 billion pension payment.
The signed budget passed both the Senate and Assembly along partisan lines.
