Houghtaling and Downey have 4 days to prevent small-business tax hike

OCEAN, N.J. - On Sept. 1, a petition started circulating around the state Legislature that would require a special session to avoid a $252 million payroll tax hike on small businesses that managed to survive the pandemic. The tax hike would be used for putting money into the Unemployment Trust Fund, which most states opted to replenish with billions of federal aid instead of raising taxes on struggling businesses.

Incumbent Assemblypersons Eric Houghtaling and Joann Downey, Democrats representing the 11th Legislative District in the State Assembly, have failed to sign the petition - allowing the tax hike to go through.

“The petition is a final effort to avoid hitting businesses where it hurts,” said Marilyn Piperno, an Assembly candidate for the 11th district. “Eric and Joann haven’t signed it because they are either political props or they believe that taxes should be raised on businesses. It is hard to tell because they refuse to speak up.”

The petition requires Governor Phil Murphy to call a special session of the legislature if more than half of legislators sign it. So far, only Republicans have shown a willingness to prevent a tax hike that could have been avoided in May. Since Murphy refused to use federal funding, taxpayers will be on the hook for over $1 billion in debt, according to state Treasury documents.

“Eric and Joann have turned their backs on businesses, even though they like to claim otherwise,” said Kim Eulner, an Assembly candidate for the 11th district. “There is no reason not to sign the petition. They should have fought for the tax hike to be prevented with federal funds in the first place. It is a shame they let it get this far.”