Greater Toms River Chamber Of Commerce Pans Tax Reform Plan

TOMS RIVER, NJ — A group of Toms River business owners are speaking out against the pending federal tax reform legislation, saying the proposed legislation will hurt New Jersey residents and businesses.

"We cannot support it in its current form," the Greater Toms River Chamber of Commerce said in a statement it issued Monday afternoon. "While the proposal may result in a net positive for the country, that would not be the case at the state-level for people of New Jersey."

The House of Representatives passed its version of the "Tax Cuts and Jobs Act" on Nov. 16 by a vote of 227 to 205. Every member of the House representing New Jersey — both Democrats and Republicans — except Rep. Tom MacArthur of the Third District voted against the bill. The Senate version of the bill passed Dec. 2 by a 51-49 margin. Legislators from both the House and Senate are now trying to work out changes to create one version of the bill that will need approval of both bodies before it can go to President Donald Trump for his signature.

MacArthur, whose district includes Toms River, insists the tax reform package will be good, particularly for residents of Toms River and other towns in the 3rd District.

In a letter sent Monday to Phil Murphy, New Jersey's governor-elect, and Senators Cory Booker and Robert Menendez and released to the media, MacArthur insists the tax reform package will bring a tax cut of $1,000 to families in the 3rd District.

"The median family with two kids in NJ-03 makes $110,620. Under current law, this family pays $7,469.94. Under the House bill, they’d pay $6,460.26," MacArthur said. "This doesn’t even include the other benefits they may experience if they run or work at a small business, or if they work at a company that will now invest more in the New Jersey instead of overseas."

The Greater Toms River Chamber of Commerce statement says it is concerned the proposed legislation, which would eliminate the state and local tax deductions and limit the property tax deduction to $10,000 (per the House proposa l — the Senate is looking for a plan that eliminates credits and deductions altogether), will drive more people to leave the state.

"One of the largest, indirect, downsides of the proposed legislation is the continued, and potentially increased, outmigration that we are seeing," the chamber's statement said. "Outmigration results in the loss of jobs, economic activity, labor income, and household income. Already staggering statistics put New Jersey near the top of the list for the highest domestic outmigration in the United States year after year."

MacArthur, in his letter to Murphy, Booker and Menendez, the issue of outmigration is a state problem. "That crisis has zero to do with a federal tax reform bill that hasn't become law yet," he said.

The chamber also cited concerns about "various business industries that would, specifically, be harmed by the proposed legislation, including the healthcare and higher education sectors."

"The Greater Toms River Chamber of Commerce business community supports tax reform, but we cannot support the proposed legislation in its current form," the chamber statement said.

"We support new jobs, developing a skilled workforce, and lowering the tax burden. Seeing too many obstacles for the people of New Jersey to financially overcome with the proposed legislation, we cannot support it in its current form, and look forward to resolutions that will ensure that New Jersey is affordable and competitive moving forward." the chamber wrote.

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