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Governor Signs Legislation To Bypass Tax Increase, Restore Solvency To Unemployment Insurance Trust Fund
June 23, 2008
Governor Jon S. Corzine signed legislation on June 19 to redirect $260 million to the Unemployment Insurance Trust Fund. The action will prevent a tax increase on New Jersey businesses and ensure the solvency of the fund for unemployed workers during this national recession.
The fund is set to automatically increase unemployment taxes on businesses if the balance falls below a predetermined level. Over the past 14 years approximately $4.7 billion in revenues has been diverted from the fund to other purposes. That has led to a diminished balance.
The bi-partisan legislation (S1698/A2801) was sponsored in the Senate by Senator Barbara Buono (D-Middlesex) and Senator Sean T. Kean (R-Monmouth). It was sponsored in the Assembly by Assemblyman Greenwald (D-Camden), Assemblyman Milam (D-Cumberland/Atlantic/Cape May) and Assemblyman Schaer (D-Passaic).
The legislation also has the support of the business community.
“For the past decade we’ve been encouraging government to put the trust back in trust funds, based on the consistent raiding of the UI fund for unrelated purposes,” said Joan Verplanck, president, New Jersey Chamber of Commerce. “Money collected from employers to protect those unemployed through no fault of their own was routinely used to balance the budget and for other purposes. The necessity for this legislation should remind us that stewardship is an important part of government, and trust is at the heart of stewardship. Kudos to the governor for restoring not only some of the previously diverted funds, but for restoring trust.”
“Make no mistake, without this bill, the state would be imposing a tax increase on jobs at a time of great economic weakness,” said Philip Kirschner, president of the New Jersey Business & Industry Association. “This tax increase would have had a very damaging effect on our economy and the ability of people to keep and find jobs. The Governor and the Legislature deserve credit for moving so swiftly to avert it.”
Posted by Christina Fisher on June 23, 2008 | Comments (0)
