Freeholders Support Tax Cuts for Small Businesses
(Woodbury, NJ) - Freeholder Director Robert M. Damminger and Freeholder Simmons, liaison to Economic Development, said today that they support a measure passed in the NJ Senate and Assembly yesterday that would provide tax cut measures to small business.
Dunn and Bradstreet lists 11,357 businesses in Gloucester County, of those 77% are sole proprietorships or have 5 employees or less.
"Small business is the backbone of our community. This legislation would offer real tax cuts to our small businesses and help spur economic growth," said Freeholder Director Damminger. "We are looking for ways to help promote our economic development and job creation."
The legislation passed, S-1540 would allow small businesses that do not file through the corporate tax code by giving them many of the same benefits enjoyed by their larger counterparts. Currently, state gross income taxes are calculated through 16 separately defined categories of income. However, unlike the federal tax code and the tax laws of 48 other states, New Jersey law does not permit small business filers to carry-forward operating losses. The bill would consolidate four income categories, and allow a 50-percent "cross-netting" of gains or losses from one category of income to another. The cut could be one of the largest small business tax cuts in state history.
Freeholder Heather Simmons said that the "Back to Work NJ" legislation that was vetoed by the Governor would have provided real tax relief for the business community. Simmons said that one bill in the package, The Back to Work NJ Program, modeled after the Georgia Works program, would have provided workplace training to eligible unemployed participants while funding employers.
"According to the NJ Department of Labor & Workforce Development, as of December 2010 there were 14,700 unemployed people in Gloucester County who could benefit from this program. This bill would be ideal for small business owners and potential hires," said Simmons. "This program has a proven track record in getting people back to work while assisting businesses.
Simmons said, "I am disappointed that the Governor chose to veto this package of legislation to get our citizens back to work and help our business community."