Facebook Twitter LinkedIn Google Plus RSS

Tax group: Benefits of GOP tax cuts nil for NJ private sector

By ,
"The Republican tax law passed last year is one of the most reckless pieces of legislation I've seen come across my desk in over 20 years in office,” - New Jersey U.S. Rep. Bill Pascrell, D-9th District.

A new report reveals that New Jersey workers haven’t seen significant monetary benefits following passage of the federal Tax Cuts and Jobs Act last year, despite claims that passage of the bill could boost individual wages by $4,000.

Data compiled by Americans For Tax Fairness showed that eight private employers in the state out of 193,960 have provided wage hikes or one-time bonuses as a direct result of the corporate tax cuts that resulted from the new law. And less than 3 percent of New Jersey private sector workers – including those employed by companies that are headquartered out of state – were promised one-time bonuses or wage hikes directly due to the tax cuts.

The data also show that six New Jersey companies used the tax breaks on $12.1 billion in stock buy-back programs and that the top five public companies in New Jersey -- Merck, Honeywell, Celgene Corp., PSE&G, Becton Dickinson and NRG Energy – are getting a combined $3.9 billion in tax savings as a result of the new law.

Only one of those – Merck – is initiating wage and bonus increases for its employees.

More From This Industry

Vince Calio

Vince Calio


Vince Calio covers health care and manufacturing for NJBIZ. You can contact him at vcalio@njbiz.com.

Leave a Comment

test

Please note: All comments will be reviewed and may take up to 24 hours to appear on the site.

Post Comment
View Comment Policy

Comments

Kirk Conover June 20, 2018 3:47 pm

Make that 9 private employers gave wage increases due to the tax cuts. Shore Agency Inc. gave our employees 10% wage increases, effective January 1st, as a direct result of the President's tax plan being passed. Quite simply, it gave us confidence to act boldly. No one contacted us from the Americans for Tax Fairness. I suspect if they did a better job compiling their data they would find out that most small business people did raise wages due to a truly fairer tax code.

Jim C June 20, 2018 4:05 pm

Wage hikes and one time bonuses are not the end all be all of monetary benefits to workers. My employer is paying for more expenses for the employees here. examples of this would be more moneys paid towards employees medical benefits, higher starting salary for new employees coming on board, meal reimbursement ext. I dont think that this would be notice as a wage increase... but it has been putting more money in my pocket!

Something else that I have noticed is my commissions checks being paid on top of salary are increasing significantly over the past few months in the service industry i work(collections). There is not much that has changed for our company on the day to day. Same clients, and the same type of consumers are being called... just much more payments being made. Maybe this has to do with calls being made to other states besides NJ where worker are receiving more of a benefit from the tax plan. i dont know.

close