While the Governor has talked about closing loopholes, he has proposed in his budget document a broad-based tax on tens of thousands of New Jersey businesses. It would amount to a 64 percent tax hike. Such a huge tax increase would damage an economy still mired in a recession. It would cost all New Jerseyans in lost jobs and economic activity. Businesses that are struggling to break even will face huge new tax bills, making layoffs inevitable.

Here is a look at some of the elements that have been discussed so far.

Gross Receipts Tax: The only written details the Governor has made public about his proposed tax hike are contained in the budget document that accompanied his March 26 budget address. That document calls for a tax of up to 1 percent to be applied to a combination of an employer's gross receipts, business property and payroll. No exemptions would be allowed for salaries, utilities, insurance or other business costs. Only those companies with less than $200,000 in payroll, $500,000 in property value and $1 million in sales would be exempt, meaning that most employers with more than three or four employees would be subject to the tax. Under the current CBT formula, businesses pay either 7.5 percent or 9 percent of their net income-the profit left over after salaries, benefits, supplies, and other legitimate business costs have been deducted.

CBT Expansion: In April, the Governor said he had not ruled out expanding the CBT to S corporations, LLCs, LLPs, partnerships and other business entities. Under current law, the shareholders and partners of these companies pay regular income tax on their share of profits from these entities. However, Treasurer John McCormac later told the Senate Budget and Appropriations Committee that business entities that were "paying their fair share" would not be subject to the CBT. It appears that the CBT will not be expanded to these entities, but NJBIA is watching this one closely.

Gross Profits Tax: Some administration officials have floated the idea of a tax on gross profits instead of gross receipts. Gross profits would allow businesses to deduct the cost of materials purchased to make their product. But they presumably would still have to pay taxes on salaries, health benefits, and other costs of doing business.

Whatever the Governor proposes, lawmakers will have only one month to examine the plan's impact. New Jersey employers should contact their legislators now to tell them that raising business taxes while New Jersey is struggling to get out of a recession doesn't make economic sense. See the Action Alert for more information.

NJBIA Lobbies for Technology Education Standards in State's Public Schools
In a letter to Education Commissioner William Librera, NJBIA called for inclusion of technology education standards in the state's Core Curriculum Content Standards that will apply to all public school students. A new draft of the standards was presented to the state Board of Education this month.

NJBIA has been pushing for the state to include technology education in its K-12 curriculum for more than a year. Employers have difficulty finding skilled workers and consistently complain that many high school graduates entering the workforce lack the problem-solving and technological skills businesses need. In its letter to Librera, NJBIA pointed out that students who take technology courses are enjoying school more, staying "on task" longer, and actually learning to solve real problems. Studies also indicate that technology education enhances students' understanding of traditional language, math and science concepts.

"A large part of our core membership is technologically based, and even in today's soft economy they are experiencing serious problems finding skilled labor," the letter stated. "This lack of interest in science and technology fields stems from the fact that students graduating from public schools throughout New Jersey are being educated in a system that does not expect them to think technologically as inventors, innovators and entrepreneurs."

For more information, contact Libby Vinson at lvinson@njbia.or or 609-393-7707, ext. 201.

Quote of the Month
"When you see something built in New Jersey, you're going to see a stamp sign that says 'Built with union labor.'

"I'm determined to make New Jersey the most pro-union, pro-building trades state in the nation."

Vinson Receives Tech Educator Award
NJBIA Assistant Vice President Libby Vinson was honored May 2 with the Technology Educator Award, presented by the Technology Educators Association of New Jersey. The Association recognized Vinson for her outstanding work to advance the field of technology education. As NJBIA's chief lobbyist on education issues, Vinson is a strong advocate for increased standards and better training for teachers in technology education.

Robinson Joins NJBIA
Frank Robinson, former executive director of the Assembly Democrats Office, joined NJBIA's government affairs staff on May 6 as vice president of government relations. Robinson brings a wealth of experience in New Jersey's political and policy-making establishment. Since 1979, he has worked in legislative and policy areas for the Assembly. He also has extensive experience in public relations and politics. NJBIA Executive Vice President Philip Kirschner said Robinson is a welcome addition to the NJBIA staff.

Esteves Promoted
Sherry Esteves, NJBIA director of programs and publications, was promoted to assistant vice president of marketing by NJBIA's Board of Trustees at their annual meeting on April 26. Esteves is responsible for promoting, organizing and overseeing Association events.

WEDNESDAY, May 29
Making Sense of Family and Medical Leave
This half-day program will help you sort through the bewildering levels of leave regulations and avoid costly mistakes regarding length of family leave, job protection, benefits and discrimination issues. Two of New Jersey's top employment law specialists will explain how to avoid the many legal pitfalls involved. Human resource managers will share the lessons they have learned from years of struggling with leave requests. The seminar will be held at the Sheraton at Woodbridge Place, Iselin, from 8:30 a.m. to 12:00 p.m. The cost is $99 per person for NJBIA members and $129 for nonmembers. To register, call Lisa Figatner 609-393-7707, ext. 239.

Tuesday, June 11
New Good Neighbor Awards Luncheon
NJBIA's 42nd Annual New Good Neighbor Awards Luncheon will be held at the Sheraton at Wood-bridge Place in Iselin. Awards will be presented to New Jersey businesses that have made an outstanding contribution to their communities through job creation, the quality of their architecture, and community involvement. The luncheon will be held from 11:30 a.m.-2:00 p.m. Cost to attend is $65 per person. For details, contact Stacy Wichner at 609-393-7707, ext. 213. Sponsorships are available by contacting Sherry Esteves at ext. 219.

Friday, June 28
Power NJ Energy Choices and Opportunities Expo
Because energy concerns matter to your business, this is one event you can't afford to miss. With a new Governor, new leadership at the Board of Public Utilities, and new energy conservation programs, it is a new world for energy consumers and producers. Learn from the experts how to benefit from this new environment. Meet New Jersey's policymakers and energy experts at this Expo, which will be held at the Sheraton at Woodbridge Place, Iselin, from 8:30 a.m.-2:00 p.m. Cost to attend is $75 per person for NJBIA members and $95 for nonmembers. A limited number of exhibit tables are available. Contact Sherry Esteves at 609-393-7707, ext. 219, for details.

Tuesday, July 16
Golf & Tennis Day
NJBIA will hold its 32nd Annual Golf & Tennis Day at Forsgate Country Club in Monroe Township. The event is one of the state's major business outings and largest amateur golf tournaments, attracting more than 300 golfers each year. Cost per person: $250 for golf and dinner, $140 for tennis and dinner, and $95 for dinner only. Sponsorships are available by contacting Sherry Esteves at 609-393-7707, ext. 219. To register or for more information, call Stacy Wichner, ext. 213. For a look at last year's Golf & Tennis Day Go Here

2002 NJBIA Sponsorship Opportunities
Contact Sherry Esteves at 609-393-7707, ext. 219, to reserve the sponsorship(s) that best achieve your company's goals!

New Good Neighbor Awards Luncheon
June 11 - Sheraton at Woodbridge Place, Iselin
Participate in one of New Jersey's premier events honoring development projects that have brought jobs to local communities. Network with past winners, developers, architects, builders and public officials.
$1,000 sponsorship includes:

• Signage and recognition at the luncheon
• Acknowledgment in the Business Voice, NJBIA's monthly newsletter distributed to more than 20,000 businesspeople
• One ticket to the luncheon with VIP seating