New Jersey Gov. Chris Christie says he’ll let a tax hike on businesses take effect if the federal government doesn’t help the state replenish the unemployment fund. Employers could see an increase of up to $1,000 per employee in their unemployment tax starting July 1 unless the fund is infused with state or federal money. The fund helps pay unemployment benefits. The increase is triggered by a growing shortfall in the Unemployment Insurance Fund. Business taxes are increased by law when the fund’s balance dips below a certain level as measured every March. Christie says the fund will be $1.6 billion in debt by March.
Christie says he’ll ask for help, but there’s no money in the state budget to pump into the fund to stop the increase. AP
Why SHOULD the federal government step in?New Jersey gives much more in unemployment benefits then most other states do. Why is it fair for NJ to ask the feds to bail them out now?
He’s been in office less then a month and he’s already breaking his promise of no new taxes.
RJ – he has been in office less than a week!! (January 19 was inauguration day). As a Christie voter, I am baffled. If he institutes this tax, it will have the reverse effect, causing many more businesses to lay off staff.
Business will migrate to Deleware. I stopped my check as an employee, I will just file the Kforms from now on, I will cut out SS Workers comp & this new state unemployment, i may even get a tax break against what I lost in the market. True I won’t be contributing to Social security for a while, but with all the extra costs & paying an accountant to file, with falling revenue & income, I just can’t afford it anymore.
If this new governer is going to strain small business even more, i guess he is a novice & worse than Corzine, either way I see him as a onetimer, if they don’t get him halfway.
I am happy I voted for neiither.
Some small companies will just close, other who were going to hire will change minds. There will be no new jobs you will have to be selfemployed on a consultant or outsourced base.
Secretaries will be based in Kenya & Philipines, stop the taxes.