MILAM BILL SIGNED INTO LAW, PROVIDES POSSIBLE TAX BREAK

milamLegislation sponsored by Assemblyman Matthew Milam to provide a tax break to New Jersey workers has been signed into law. The law (A-3792) gives the state authority to lower temporary disability benefit contribution rates by employees commencing in 2012.
“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 law will lead to a reduction in tax rates for workers. That’s always a great thing.”
Under the Milam law, 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 past 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 law will cause a reduction in tax rate for workers.
Milam (D-Atlantic/Cape May/Cumberland) 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.
The bill was signed into law on Friday.

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