Would discourage business growth, hurt workers, and state economy
TRENTON (March 13, 2018) — In response to Gov. Phil Murphy’s 2019 New Jersey budget speech today, the following statements can be attributed to National Federation of Independent Business (NFIB) New Jersey State Director, Laurie Ehlbeck:
“The Governor’s massive spending plan punishes the state’s job creators. That will only hurt the state’s economy which is already in dire straits. Many small business owners could be swept up by the so-called “millionaires tax” simply because they file their business taxes on their personal income tax forms, throwing them into that category. Their take-home pay may be much lower, and a lot of that income is reinvested into their businesses.
“Bumping the minimum wage up by leaps and bounds could force small businesses, especially those that hire lower-skilled workers, to cut hours, cut jobs and possibly close their doors. The most recent research shows there is a tipping point, especially for companies on a slim profit margin who simply can’t afford the increased labor costs and can’t competitively raise prices. The irony is it actually hurts the workers it’s meant to help. The added cost of paid sick leave will exacerbate the danger of job losses.
“The astronomical spending plan Gov. Murphy proposes has no restraint, and it could bankrupt New Jersey, especially if the businesses and taxpayers footing the bill flee to other states as a result. The pension obligation is important to honor, but without significant reductions in cost, like moving toward a 401-K type plan, it’s irresponsible.
“While Gov. Murphy’s plan for a well-trained workforce deserves credit, offering free community college and additional college grants, it’s a pie-in-the-sky idea that will significantly increase the state’s debt load. It also sends the wrong message – that you don’t have to work or contribute to improving your situation. That is how entrepreneurs succeeded, and they are are the ones footing this bill.
“A broad-based sales tax increase will hurt all those living in in the state. Low-income people will pay more for goods, and it’s likely to hamper retail sales. This piling on of increased taxes and costs the Governor recommends today sends up a big red flag, don’t spend in New Jersey, don’t move to New Jersey, don’t do business in New Jersey.”
