July 10, 2009

GREETINGS AND SAL-UTATIONS!

Dear «First Name»:

BUSINESS BURDENS: NEW TAXES & GOVERNMENT HEALTHCARE

Last week, even as NJGCA was continuing to fight MVC and Parsons over the inspection debacle, Governor Corzine signed into law the 2010 state budget.

Promising to constrain state spending in a difficult economy, the new budget still came in at a lofty $29 billion.  To be fair to Trenton lawmakers, this is smaller than last year’s budget, which topped $32 billion.  However, the state received an additional $3.5 billion infusion from the federal government to help make ends meet.

And yet, even with those extra federal funds, you can expect new, higher taxes next year.  How is this possible?  Well state revenues have continued to fall over the last year as a poor business climate, excessive regulation, and a high tax burdens have impacted New Jersey’s local economy.  Of course the larger economic downturn hasn’t help matters either.  As such, these budget shortfalls had to be made up for, in part, by raising other taxes to compensate for lost revenue.

You didn’t misread that – they are increasing taxes even as tax revenue falls – which will almost assuredly reduce revenues even further for the following year.  Already they predict a larger deficit for the 2011 budget.

So what does the state budget mean for your small business?  Quite a bit, actually.

A large part of the increase will focus on income taxes.  Those upper income earners who make over $400,000 a year will see a steep tax hike.  That may not sound like it could impact you -- until you realize that many small businesses, S Corps, Limited Partnerships, and LLCs may legally fall into this category.  That means it may affect YOUR establishment.
Additionally, the state is extending a 4% hike in the Corporate Business Tax that was established in 2006 for an additional year.  And, ironically, the state will raise the tax on insurance premiums even as it pushes to mandate universal healthcare coverage for all residents.

The cigarette tax - which was only recently raised - will increase an additional 12.5¢, while additional taxes will be placed on hard alcohol and wine sales.  And those making more than $250,000 a year – again, that could legally mean YOU - will NOT see a property tax deduction next year.

All of this adds up to an added burden for your small business, your patrons and the larger economy.

But don’t think that it’s just Trenton flexing their policy-muscles.  Right now, even as you read this, federal lawmakers are debating healthcare reform in Washington, D.C.  That’s right, Uncle Sam wants to play doctor!

Anyone paying remote attention knows that the cost of healthcare continues to rise.  Why?  An army of experts will tell you that it isn’t any one component that is making prices jump.  Rather, it is a number of factors which have contributed, including a spike in malpractice lawsuits and an expansion in government coverage-mandates – both of which contribute to skyrocketing costs.

Regardless on where one personally stands on the issue, everyone can agree that reform is needed to make healthcare more affordable for everyone.

However just how far – and how drastic – will we go to gain those changes?

NJGCA and a number of business groups applaud common sense reforms like escalating the use of electronic medical records, focusing on preventative care, mandating yearly check ups to catch problems before they develop into serious problems, and allowing consumers to select their own level of coverage rather than forcing a one-sized “Cadillac” plan that includes everything and the kitchen sink.

Unfortunately, Washington has a different idea and is pursing “feel-good” legislation at its very worst.

Federal lawmakers want to follow New Jersey’s example and tax insurance premiums, which will only make already costly coverage more expensive.  They also want to create a federally run insurance plan which could have devastating affects on private insurers.  Developing a “public option” could essentially create an incentive for Americans to drop their current coverage and move to the public plan – creating a crippling burden for taxpayers. Early estimates put the basic package at $1.6 trillion over 10 years.  That’s not only unsustainable and will cost EVERYONE more money, but is recklessly irresponsible.

Other proposals call for a mandate which will force all employers to provide healthcare to all employees and forcing a “minimum benefits” package on the public.  The final “solution” may adopt all or some version of these ideas.  But any of these proposals, as they exist right now, would only increase the taxpayers’ burden and set a dangerous precedent.

Nationwide, employers pay $500 billion a year providing healthcare benefits for their employees.  Imagine business owners who are unable to afford health coverage being forced to offer these benefits?  How many jobs would your establishment have to shed only to cover those people you continue to employ?  How would it impact the larger economy?

It doesn’t take a PhD or an MBA to answer that question.  The healthcare industry makes up roughly 20% of our economy, but any negative changes made will be felt across the entire market.

So what is there to do?  Contact your representatives in Congress and ask them to carefully consider these proposals before they do further damage to our economy.  We do not need Washington dictating your healthcare – we need them to reform the system to make it more affordable for all Americans.

You can find who represents you in Washington by clicking HERE – Just fill in your zip code or your street address.

Our fight against MVC/Parson on the inspection equipment sales continues to get attention by the media.  Recently, two of our members and I were featured in the local news railing against the State’s horrendous tactics.  If you haven’t seen them yet, please take a few moments to see what we had to say. 

You can view the NJN News segment by clicking HERE and the Fox 5 NY clip by clicking HERE

Thanks for listening - See you next week!

Regards,
Sal Risalvato
Executive Director

IN THIS WEEK’S NJGCA ROAD WARRIOR:

NJ GREEN AUTOMOTIVE REPAIR COUNCIL
•Take advantage of this program and get recognized for your "green" credentials!

NEWS AROUND THE STATE
•New Jersey license plates to get updated
•State beings $900 million Parkway widening project
•Retailers report June slow down
•Federal EPA gives NJ permission to adopt tougher emission standards


ON THE NJGCA HOMEPAGE

MEMBER SAVINGS PAGE
Check out all of our MBPs and Programs designed to SAVE YOU MONEY!

HELPFUL LINKS
Looking for something? Take a look at our list of useful links!

NEWSLETTER ARCHIVE
Find all our communications and search for old e-newsletters. Take a look!

NEWS AROUND THE STATE ARCHIVE
Need to catch up on events?  Want to see what's going on?  Find out here!
 

PIF CLASSES UPDATE

The New Jersey Motor Vehicle Commission has recently sent out a VID message to all Private Inspection Stations in state. 

All currently licensed Inspectors must complete an Inspector refresher course and pass a general knowledge exam with a grade of 80% or better to remain in the program.  If any test-taker answers 11 questions wrong, they will automatically fail.  A hands-on test for licensed Inspectors will not be required.

Inspectors will have until December 31, 2009 to take and pass the test.

Current Licensed Emission Inspectors only need the “Re-Fresher Course” and the “Written Exam”.  New Emission Inspectors will be given a “Hands On” test separately at your place of employment by the State of New Jersey. 

NJGCA will be offering refresher courses at the following two locations.  Classes will take place over six evenings:

NJGCA Headquarters
66 Morris Ave.
Springfield, NJ 07081
July: 14, 16, 21, 23, 28, and 30                
September: 8, 10, 15, 17, 22, and 24

Bob's Precision Auto Repair
1264 Hwy 35 South
Middletown, NJ 07748
August: 11, 13, 18, 20, 25 and 27
October: 6, 8, 13, 15, 20, and 22

NJGCA Members Cost - $349.00  
Non-Members Cost - $489.00

Manuals are included in the prices above and payment is due upon registration.  All classes are 6:45 pm to 10:00 pm; the “Written Exam” will be given on the last day at 12:00pm at NJGCA Headquarters in Springfield, NJ.

If you are interested, please contact our office to enroll in a class.
 
Please contact Debbie Hill at 973-376-0066 with any questions.

 NJ GREEN AUTOMOTIVE REPAIR COUNCIL

NJGCA is participating in the NJ Green Automotive Repair Council along with AAA-NJ, the NJ Coalition of Automotive Retailers (NJCAR), and the NJ Department of Environmental Protection.  
 
The council's mission is to encourage NJ automotive repair facilities to adopt environmentally responsible business practices. 

Through a certification program for dealership and independent automotive repair facilities, the council will also establish “green” repair standards.  Those who are reviewed and qualify will receive certification.  Stickers will also be given to those facilities to illustrate their participation in the program.

If you would like to participate in the program and fill out an application, please contact Debbie Hill at 973-376-0066.  An application fee and annual review fee are applicable.  
 
More facts about the program are available www.njgreenautorepair.org 

NEWS AROUND THE STATE

7/9/2009:
New Jersey license plates to get updated
The colors will stay the same, but New Jersey license plates will soon get a slightly different look.  That’s because next year, state officials will start issuing plates beginning with the letter Z and reverse the letters and number sequence on newly issued plates.  This is being done in an attempt to keep plates viable for the next 20 years.

7/7/2009:
State begins $900 million Parkway widening project
After years of delays and endless reviews, state authorities began a long-planned widening project on the Garden State Parkway this week.  The multi-year project will expand the Parkway from 2 lanes to 3 lanes from Toms River (Exit 80) through Somers Point (Exit 30).  The project is being opposed by environmental groups.

7/1/2009:
Retailers report June slow down
The nationwide economic slow down has forced many retailers to slash prices in an attempt to drive consumer traffic to their stores.  While such measures are great news for bargain hunters, it is a major blow to the retail industry, who anticipate poor numbers through the rest of the year.

6/30/2009:
Federal EPA gives NJ permission to adopt tougher emission standards
In an effort to curb greenhouse gas emissions, the Environmental Protection Agency will allow New Jersey and 13 other states to adopt stricter auto emission regulations.  The measure was spearheaded by California.  Analysts believe this may eventually lead Washington to mandate tougher fuel economy standards nationally.

CLICK HERE TO READ MORE ARTICLES IN OUR “NEWS AROUND THE STATE” ARCHIVE