Congressman Leonard Lance (NJ-07) and New Jersey business leaders met today to discuss how the pending tax increases will impact job creation in New Jersey.
During a visit to All-State Legal in Cranford, Lance heard firsthand from members of New Jersey's business community about the importance of extending tax cuts -- which are set to expire January 1, 2013. The event was part of the national "Stop the Tax Hike Day' to help call attention to the issue.
"Raising taxes on anyone in a down economy is a bad idea," said Lance. "Businesses like All-State Legal and others in Union County need economic certainty from Washington. It's my hope that Congress will work in a bipartisan fashion to extend the expiring tax relief for all Americans and prevent negative economic consequences -- like further job loss -- from occurring. Without action, New Jersey job creation will remain stagnant and Garden State residents will face the second highest tax increase in the Nation. That's unacceptable."
"Because of current tax uncertainty, every penny our company earns we save it or use it to retire debt -- rather than expanding and hiring," said Robert Busch, the owner of All-State Legal.
"There is a direct correlation between tax increase and economic activity and unfortunately there are those who continue to deny that tax increases inhibit economic growth. Union County businesses are the life blood of our community and they are craving economic certainty so they can start investing and hiring again," said Jim Coyle, the President of the Gateway Regional Chamber of Commerce.
According to a recent study by the Heritage Foundation, New Jersey residents will be adversely affected by the pending tax hike. For example:
· New Jersey residents will pay the 2nd highest tax increase in the Nation.
· Seventh District residents will pay the 3rd highest tax increase in the state.
· Nationally, the Seventh District ranks 22nd for being hardest hit by the expiring tax cuts.
According to a recent Ernst & Young study, over 20,000 New Jersey jobs could be lost should the tax cuts expire.
During the event, Lance also called on the Senate to pass nearly 32 House-passed bills aimed to help small businesses create jobs including measures to repeal cumbersome federal regulations, reduce costs of red tape, provide tax relief and increase efficiency.
Lance noted that next week, the House will vote to extend the current tax rates for one year, while laying out a timeline for the first fundamental overhaul of our tax code in over 25 years.