TRENTON, NJ – While businesses and employees lose income from a drop in consumer spending and widespread closures, Assemblyman Brian Bergen (R-Morris) is calling for a state tax holiday to keep businesses and people financially afloat.
“The best way to help residents and businesses is to let them keep the money they have,” Bergen said. “Revenues are strong for the state right now. Government can afford a loss of income more than our constituents, and those are the people we swore oaths to represent and protect to the best of our abilities.”
Revenue is expected to be $1 billion higher than expected at the onset of the fiscal year. Democrats are proposing allowing no-interest loans for small businesses through the Economic Development Authority, but Bergen says that doesn’t provide enough help, Bergen said.
“The last thing businesses need is to rack-up debt. Providing a tax holiday requires no effort, and extends to every person impacted. The state shouldn’t be picking winners and losers by providing targeted loans, especially during a pandemic. The goal is to provide maximum help to a maximum amount of people,” Bergen said.
Bergen plans to introduce legislation Monday providing a complete tax holiday for as long as there is a state emergency for the new coronavirus.
“People are being forced to stay home with their kids due to school closures and are losing income while bills add up, and small businesses are experiencing huge drops in sales but still need to pay rent and other expenses. Providing a tax holiday is a solution that takes every individual scenario into consideration,” Bergen said.