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TRENTON – A measure sponsored by Senator Fred H. Madden and Senate President Steve Sweeney which would reduce the unemployment insurance (UI) tax rate for employers, was approved today by the full Senate, by a vote of 28 to 9.

The Senators said the measure is necessary to prevent the potentially devastating effects of a scheduled massive increase in the business share of the UI tax. Under triggers written in the UI law – which requires the tax rate to increase incrementally when the system runs in deficit – the tax rate is scheduled to jump by multiple increments this year, resulting in a $1 billion dollar increase, which figures out to be $400 per employee.

“This bill would prevent a drastic tax hike which could do irreparable harm to the State’s already fragile business climate,” said Senator Madden, D-Camden and Gloucester. “Consumers can only purchase goods if they have jobs, and jobs can only exist in a healthy business climate. The economy is on the upswing, and passage of this legislation would help to continue the process by allowing businesses and the jobs they create to remain right here in New Jersey.”

TRENTON – A measure sponsored by Senator Fred H. Madden and Senate President Steve Sweeney which would reduce the unemployment insurance (UI) tax rate for employers, was approved today by the Senate Labor Committee, by a vote of 4 to 2.

The Senators said the measure is necessary to prevent the potentially devastating effects of a scheduled massive increase in the business share of the UI tax. Under triggers written in the UI law – which requires the tax rate to increase incrementally when the system runs in deficit – the tax rate is scheduled to jump by multiple increments this year, resulting in a $1 billion dollar increase, which figures out to be $400 per employee.

“With New Jersey just now beginning to recover from the recent recession, we need to protect businesses from experiencing a huge tax hike that could prevent them from ever being able to get back on their feet,” said Senator Madden, D-Camden and Gloucester, who chairs the Senate Labor Panel. “Holding the limit on the UI tax makes good sense in this economic climate. It will help us promote business and economic growth when we need it most.”