The New Jersey State Senate today holds a special vote on establishing a new government mandate and tax on businesses in the state, paid leave. We commend NJBusinessMatters as the best place to follow the issue from the perspective of business and the taxpayers. Paul Tryhala today notes yet another problem with the bill.
Bill advocates have claim that only about 1% of New Jersey’s workforce will utilize the program, and the bill uses these assumptions when setting the tax rate. This is based largely on California’s experience with paid leave. What they fail to mention is that because it is so new, only 28% of Golden Staters know about the program. They also do not take into account the increasing number of paid leave applications and the rising costs – an $80 million jump in just two years. Remember, there is no contingency in the bill for what would happen if the $33 per year tax on employees is not enough to cover expenses.
The Tax Foundation reports that New Jersey currently ranks 49 out of 50 states in its business tax climate. They’ll get it to 50 soon enough.
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