Tax Credits Possible for Seasonal Employers [AUDIO]
Shore-area businesses being hit with higher costs associated with the minimum wage increase could get some assistance, under proposed legislation announced during a press conference on the Wildwood boardwalk Monday.
New Jersey Assemblyman Sam Fiocchi (R-Vineland) is sponsoring a bill that would provide seasonal employers with credits against their corporate business tax and gross income tax, due to increased labor costs caused by the state's 14 percent rise in the minimum wage in January.
"It gives them a credit between the federal minimum wage, which is $7.25, to the state minimum wage, which is $8.25," Fiocchi said.
It's a win-win for everybody, according to Fiocchi.
"The employees will get the increased minimum wage, but then the employers are able to maintain prices and maintain employment levels," Fiocchi said.
Not providing a credit such as the one he is proposing would hurt the middle class, Fiocchi said, adding, "All we're trying to do is keep jobs and spur people to come to the shore. In the end, that creates more taxes and it actually pays for itself."
The measure has some bipartisan support, Fiocchi said, noting the bill must go through a legislative committee and then to the floor for a vote. He's hoping to have it passed by the end of June.