O’SCANLON APPLAUDS ASSEMBLY APPROVAL OF BUSINESS TAX REFORM BILLS

O’SCANLON APPLAUDS ASSEMBLY APPROVAL OF BUSINESS TAX REFORM BILLS A-3124 and A-2722 Will Help Business… More Needs to be Done 

With the passage of two bills that address and reform taxes on businesses in New Jersey, Assemblyman Delcan O’Scanlon today praised the vote in the General Assembly, but indicated that further measures are required by the Legislature in order to restore the state’s economy and provide in impetus towards attracting and retaining businesses in the Garden State.

“Today’s approval of extending the carryover period of net operating losses from seven years to twenty years for corporations, and eliminating the “throwout” of receipts stipulation that is currently part of the calculation of a corporation’s business tax is common sense,” stated O’Scanlon (R – Monmouth and Mercer).  “In fact, these two items are part of the Republican Common Sense Plan which we introduced in May.  It is unfortunate that it took an economic catastrophe for legislation such as this to move forward.  I hope that my colleagues in the Assembly will continue to evaluate other components of the Common Sense plan that will encourage job creation in our state as well attract new businesses.”

O’Scanlon went on to point out that according to the New Jersey Department of Labor, the state lost 3,900 jobs in September, and over 20,000 so far in 2008.  Further, a Rutgers economist recently testified at a Senate committee hearing that New Jersey could lose over 67,000 private sector jobs if the recession extends into 2010, and perhaps as much as 246,000 jobs if it continues into early 2011.

“I hope that today is the beginning of changing the perception of New Jersey as an anti-business state,” continued O’Scanlon.  “That reputation took a long time to develop and we need additional, long-term structural reforms in order to reverse that course.  Government can play a role in stemming and turning around the state’s economic tide.  Republicans have proposed additional economic incentives for attracting new, high paying jobs, such as establishing a preference program for guaranteeing a percentage of government contract work for New Jersey businesses, and enacting regulatory reforms for streamlining the approval process as it relates to economic development.”

O’Scanlon also encouraged legislators to consider the Republican proposal for a sales tax holiday between November 28 and January 4, 2009.  Bill, A-3327, was introduced last week and will reduce the sales tax in half in all areas of the state, including Urban Enterprise Zones.

“The sales tax holiday will provide a shot in the arm to both business and consumers,” commented O’Scanlon.  “It is not meant as a long-term solution, but rather an immediate way to throw people a life preserver and stay afloat as they navigate their way through the perils of this crisis.”

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