News Release: December 18, 2000
The New Jersey Business & Industry Association todayurged state Senators to vote yes for legislation, S-848 (Bucco, Inverso)/A-1846(Gregg, Talarico), that would phase out the double taxation of smallbusinesses known as S corporations over a three year period. Thebill is scheduled for a vote in the full Senate today."As currently written, our tax law for S corporations puts small businessowners in New Jersey at a competitive disadvantage with their counterpartsin 42 other states that do not double tax S corporations," said NJBIA PresidentJoe Gonzalez. "It discourages the entrepreneurship and risk-takingthat turn small businesses into large, successful employers. Andit puts an added burden on New Jersey's small employers."
Gonzalez commended the bill's sponsors, state Senator Anthony R. Buccoand Peter A. Inverso, as well as Senate President Don DiFrancesco, forscheduling the measure for a vote.
"In supporting this bill, Senate President DiFrancesco has demonstratedan understanding of the complexities and difficulties of running a smallbusiness in New Jersey," he said. "By eliminating double taxationof S corporations, we will help thousands of small businesses and theiremployees."
Under current law, New Jersey is one of only eight states that requiresthe S corporation to pay corporate taxes and the shareholders to pay personalincome taxes on the same income.
"Senate President DiFrancesco recognizes that, even in good economictimes, thousands of small businesses are shouldering an unfair tax burden,"Gonzalez said. "The Senate president's decision to post this importanttax cut for a vote today will hopefully bring us a step closer to eliminatingone of the most onerous and unfair business taxes on the books."
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