Tuesday, April 12, 2016

A Surplus And Tax Cut In NJ? Wow!

New Jersey Senate Republican Budget Officer Anthony Bucco said that strong anti-fraud measures signed into law in 2013 helped lead to a $1 billion surplus in the New Jersey Unemployment Insurance Trust Fund and a $200 million tax cut on employers.

Sen. Anthony Bucco said anti-fraud efforts helped restore the state UI fund to full solvency triggering a $200 million tax cut for employers. (Wikimedia Commons)

“The $200 million tax cut announced by Governor Christie today is a direct result of our efforts to crack down on unemployment insurance fraud,” said Bucco. “We increased penalties on those who fraudulently claimed benefits and added new safeguards to prevent those claims from being approved.”
The Governor highlighted a number of anti-fraud efforts which saved the UI fund hundreds of millions, helping to turn a $2.1 billion deficit into a positive balance of $1 billion.
Bucco sponsored S-2738, enacted on August 9, 2013, which assesses penalties for certain fraudulently obtained unemployment benefits and directs those penalties into the UI fund.
He also sponsored S-2740, enacted on October 16, 2013, which requires information reported by employers to the Department of Human Services about newly hired employees to be shared by the department with other state agencies.
“With a $1 billion surplus, I’m glad to say that our efforts to prevent fraud have helped restored the UI fund to full solvency,” added Bucco. “The resulting $200 million tax cut will lower the cost of doing business for New Jersey employers and help them to continue growing the state’s economy.”

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