HILLSBOROUGH: Rep. Lance hears business owners’ views on taxes

By Peter Sclafani, Staff Writer
   Rep. Leonard Lance brought his re-election campaign to Hillsborough on Monday, speaking with local business owners about what Congress should be doing between now and Jan. 1 to prevent a major tax increase.
   Mr. Lance spoke to about 20 business owners under a tree at Planet Earth Biodiesel on Roycefield Road. He said that seven in 10 jobs created in the past four years are thanks to small businesses. However, if Congress does nothing before the end of the year, income and other taxes will rise at the start of 2013, leaving businesses with less money to create jobs, he said.
   Business owners expressed concern whether Congress will try to extend the Bush-era tax cuts, about the effect of health-care mandates and a general lack of economic stability.
   Mr. Lance told them the Republican-controlled House of Representatives had passed a resolution to retain the income tax rates although he admitted he was worried the Senate, where the Democrats hold a majority, would not do the same.
   Republicans want to extend tax cuts to all taxpayers while Democrats want to keep the lower rates on taxpayers making less than $250,000 and let taxes rise to pre-2001 levels on higher incomes.
   ”Deficits can be reduced if more people are working,” Mr. Lance said. “We want to make sure businesses continue to grow.”
   Mr. Lance’s Democratic opponent, state Assemblyman Upendra Chivukula, said by email that Congress must focus on providing middle-class tax relief and policies that help grow small businesses.
   ”I believe that the best way forward is to extend the Bush-era tax cuts for those earning less than $250,000 per year, continuing the payroll tax deduction and making sure that small businesses have access to financing,” Mr. Chivukala said in a statement.
   In attendance Monday was Hillsborough Township Committeeman Frank DelCore, who serves as the liaison to the Economic and Business Development Commission in Hillsborough.
   ”These are difficult times,” Mr. DelCore said. “We are trying to do all we can locally to make sure businesses can succeed and thrive.”
   Other problems that may threaten the success of local businesses were brought to Mr. Lance’s attention as well.
   Barbara Cohen, owner of RC Fine Foods in Hillsborough, which employs 71 people, told Mr. Lance her biggest concern was the health care rules her business will have to pay for come the new year.
   ”We will get slammed by the new health-care rates,” she said. “How am I supposed to tell my employees — some of whom make just $14 per hour — they are going to have to chip in even more for their health insurance?”
   Mr. Lance said his position always has been to repeal and replace the affordable health-care law, whose constitutionality was upheld by the U.S. Supreme Court this summer.
   According to Mr. Lance, uncertainty regarding individual tax rates, health-care options and the capital gains tax are stifling the growth and innovation of small businesses across the country.
   Mr. Lance said he was certain that, if taxes rise, his district would be one of the hardest hit in the country. New Jersey residents pay the second-highest taxes in the country, he said.
   ”(Congress) may act on taxes in November, and I want to address the issue as quickly as possible,” he said.
   Mr. Lance and local business owners agreed there needs to be incentive to attract manufacturing back to the U.S.
   ”Getting some of the money that is trapped overseas would greatly affect this area,” said Michael Kerwin, president and chief executive officer of the Somerset County Business Partnership.
   Once again, Mr. Lance’s answer was to act to create a sense of stability and certainty before the end of the year.
   ”Nobody can out-innovate America, but we have to provide incentives to make sure innovation continues,” Mr. Lance said. “And that incentive should be certainty.”