MILAM BILL TO PROVIDE TAX BREAK FOR WORKERS CLEARS LEGISLATURE

(TRENTON) – Legislation sponsored by Assemblyman Matthew Milam to provide a tax break to New Jersey workers was approved Monday by the Senate, giving it final legislative approval.
The bill (A-3792) gives the state authority to lower temporary disability benefit contribution rates by employees commencing in 2012. It was approved 51-23-2 by the Assembly on May 9 and 31-7 by the Senate on Monday. It now goes to the governor.
“Giving the state authority to annually adjust the disability benefits rate will prevent excessive accumulations that have sometimes resulted in the diversion of significant amounts of monies from the fund for another use,” Milam said. “If, as has occurred during most years, total contributions paid into the fund substantially exceed total benefits paid out of it, this bill would cause a reduction in tax rates for workers.”
Under the Milam bill, the annual adjustments in the contribution rate are designed to prevent excessive accumulations in the state disability benefits fund.
In past years, large surpluses in the fund have sometimes resulted in the diversion of significant amounts of monies from the fund to the general state budget.
Since 1994, $748 million has been diverted from the fund, with the most recent diversion occurring in the current fiscal year.
If, as has occurred during most years, total contributions paid into the fund substantially exceed total benefits paid out of the fund, the provisions of this bill would cause a reduction in tax rate for workers.
Milam said he will be introducing legislation to form a task force to find a way to provide a similar tax break to New Jersey businesses.
“When this fund has surplus money, everyone should benefit,” Milam said.