$380M Tax Break Coming for New Jersey Privately-Owned Businesses

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MIDJersey Chamber Reacts Favorably to Pro-Business Announcement

[dropcap]I[/dropcap]n a pro-business measure, Governor Christie today announced the largest single cut to unemployment business taxes in the modern-day era. New Jersey private businesses will receive a total of $380 million in tax relief effective July 1, 2016 due to a stable and balanced Unemployment Insurance Trust Fund.

The Unemployment Insurance Trust Fund withstood crippling demand and borrowing following the 2007-2008 Great Recession. The Fund underwent significant reform, including an anti-fraud initiative, and replenished itself in 2014. Today, the Fund has regained full strength and owns a $1.8 billion balance. The surplus has paved the way for unparalleled tax relief for New Jersey’s private-sector employers.

Following an April announcement of a $200M abatement in Employer UI taxes, the Governor called for another $180M today which immediately drew praise from business advocacy groups, including the MIDJersey Chamber of Commerce. President & CEO Robert Prunetti calls the Governor’s announcement: “business-friendly and fiscally responsible.” He added that the “MIDJersey Chamber has promoted the fund be corrected to reward businesses who have had to make difficult sacrifices and unpopular decisions. This is a good day for New Jersey business growth.”