FOR IMMEDIATE RELEASE – December 10, 2008

CONTACT:  MIKE DONOHUE (609)780-6525

DONOHUE: ACTION NEED NOW TO BOOST NEW JERSEY’S BUSINESS RANKING

Cape May County, NJ:  Michael J. Donohue, Dennis Township Republican Municipal Leader and 2007 candidate for N.J. Assembly, issued the following statement on the SMALL BUSINESS & ENTREPRENEURSHIP COUNCIL’S SMALL BUSINESS SURVIVAL INDEX 2008 (attached):

“Today’s announcement by the Small Business & Entrepreneurship Council that New Jersey ranks dead last among the 50 States in encouraging business start up and innovation shows that the folks in control in Trenton have utterly failed to do their jobs,” Donohue says. “This announcement confirms what businesses and residents have been telling us by voting with their feet and leaving New Jersey.  Our very survival in Cape May County and southern New Jersey depends on small business.  Trenton’s policies are killing us.”

Donohue continues, “Our federal and state leadership must take steps reflecting the seriousness of these difficult times.  The weak package offered so far will have no immediate impact to improve people’s lives and amounts to less than a drop in the bucket.” Donohue calls on elected officials to take the following action to make New Jersey a magnet for new businesses and entrepreneurs:

            1.  Immediate suspend for a period of one year all payroll taxes except for social security deductions.  This will put an additional 12%-15% of income back into the pockets of the hardworking people of New Jersey and allow for new business start-ups and existing business expansions, which will create jobs.  While Governor Corzine has made a similar proposal, he has not gone far enough.  Any shortfall should be made up by assigning a portion of the $700 billion federal financial bailout to cover the payroll tax suspension.  Working people are too important to fail and should directly share in the benefits of the financial bailout.  With 12% to 15% more money in their pockets, families will be able to weather this financial storm, stay in their homes, and keep small businesses running.  Neither members of the U.S. Congress nor the State Legislature should leave their desks for Christmas vacation until such relief is in place 

            2.  Immediately suspend all corporate; franchise and other small business taxes in New Jersey, including the hotel tax, for a period of six months. Allow business to pay taxes for this six-month period on a deferred basis over five years.

            3.  Establish New Jersey as an International Economic Development Zone.  Provide to any business that relocates its operations from oversees to New Jersey a five-year complete tax deferment, with payment spread over 10 years, and an immediate 100%, same-year depreciation tax credit for all capital investments in New Jersey.

            4.  Halt the implementation or introduction of all new regulations that amount to any expense for businesses.  Suspend all regulations that amount to any business expense except to the extent that any such suspension might threaten the environment or the safety of workers.

“Only bold action will help New Jersey emerge from the current economic crisis.  By pursuing policies that result in New Jersey continually being ranked as the least friendly state for business, the powers-that-be in Trenton are ensuring that our state will be an economic wasteland for generations.  The McGreevey-Corzine experiment has failed.  It is time to focus on business attraction and job creation,”

Donohue says.

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