Contracting and Tax Accountability Act Heads To Senate

113TH CONGRESS 1ST SESSION H. R. 882

"To prohibit the awarding of a contract or grant in excess of the simplified acquisition threshold unless the prospective contractor or grantee certifies in writing to the agency awarding the contract or grant that the contractor or grantee has no seriously delinquent tax debts, and for other purposes".

The U.S. House of Representatives unanimously passed House Resolution 882, Titled the Contracting and Tax Accountability Act of 2013.” The bill would ban the government from awarding contracts and grants unless the bidder certifies in writing that the individual or company does not have “seriously delinquent tax debts.” Rather than focusing on any tax debt of the company, the certification also focuses on the tax debt(s) of the individuals running the company.

The Legislation would ban the award of a contract to a “person with a seriously delinquent tax debt.” A corporation violates this standard if an officer or shareholder with a controlling interest in the company has an outstanding tax debt for which a notice of lien has been filed. A tax debt will not be considered “seriously delinquent” if it is being paid in through a payment agreement with the IRS or if there is a hearing request pending. 

The full text of the Legislation can be found here.

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N.J. Democrats Fear A Christie Landslide Could Sweep Away Their Control of States Legislative

Gov. Chris Christie’s popularity is showing no signs of declining, Democrats in New Jersey are worried about more than just their uphill struggle in their quest to win the State House. They are concerned about what is shaping up to be a blowout at the top of the ticket in November. It is no wonder Democrats want to do all they can to minimize the damage by concentrating on retaining majorities in the States Senate and Assembly. Christie's approval rating was 74 percent in the latest Quinnipiac University poll. Democrats worry that Christie’s coat tails have the potential to sweep the Senate and possibly even the Assembly out from under them.  Read More

We wonder if that would really be a bad thing for the Citizens of New Jersey. Under this Democrat controlled Legislature and former Governor Corzine, taxes were raised on New Jersey's Taxpayers over 130 times. When Chris Christie took office the State was only a few months from insolvency. Chris Christie and his team have worked tirelessly since he took office to balance the budget without increasing taxes. He is currently the only one standing between New Jersey's already overburdened taxpayers and  the return to this Democrat controlled Legislatures penchant for tax increases and budget deficits.  

Meanwhile Democratic candidate Barbara Buono is the only Democrat Currently declared as running for Governor after State Senator Richard Cody and Newark Mayor Cory Booker both indicated they will not run. Buono has garnered an endorsement from the Ocean County Democrat organization. Buono has also been endorsed by the Democratic Party organizations in Somerset  and Monmouth counties. Democrats in Middlesex County, and Sussex County Democratic Chairman have informally pledged their support. If she wins her party's nomination, she would face an uphill battle against Chris Christie in November. Read More

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IEC Supports Extension of 179D Tax Credit

IEC Supports Extension of 179D Tax Credit 

The Independent Electrical Contractors, the National Electrical Contractors Association (NECA), and dozens of other construction and real estate groups have signed a letter in support of Senate Bill 3591, the Commercial Building Modernization Act (CBMA), which extends and enhances the tax deduction at Section 179D of the Internal Revenue Code for energy efficient commercial and multifamily buildings. Buildings use more energy than any other sector of the U.S. economy and consume more than 70 percent of electricity in the country. 

179D was one of several key tax incentives enacted over the last several years focused on encouraging businesses to incorporate energy efficiency into their operational plans. 179D in particular relates to the design and construction of energy-efficient commercial building property. Intended to offset some of the costs of qualifying energy-efficient improvements to commercial buildings, the deduction allows building owners to take an immediate expense for the cost of property that would normally be recovered through depreciation. To qualify, energy-efficient improvements must reduce total annual energy and power costs with respect to the interior lighting, heating, cooling, ventilation, and hot water systems by 50 percent. Partial deductions are allowed. 

179D expires at the end of 2013, but work on extending and improving this important deduction has already begun. Specifically, the CBMA improves Section 179D's effectiveness by making the tax incentive useable for a broader range of building owners, such as those owned by real estate investment trusts and certain LLPs. It also makes the incentive "performance based" and "technology neutral" mean that the greater the energy savings, the greater the deduction, and the incentive applies to projects not products, so owners and their contractors can decide among the best suite of efficiency measures that will achieve optimal energy performance in their assets rather than specifying particular equipment or products. 

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Governor and NJ Democrats Disagree On Success of Property Tax Cap

Governor Chris Christie says the 2% Property Tax Cap is working while the States Democrats are claiming it is an egregious failure

The Truth is that Democrats led by Senate President Steve Sweeney soundly rejected Governor Christie's plan for a flat 3% Cap that contained no loopholes. They then substituted their own 2% cap with various loopholes for Schools and Municipalities that they ultimately passed and sent to the Governor

Of course the Governor did sign the bill, so his name is indeed on it. We believe the Governor signed the slightly flawed Bill because he believed that if he did not compromise there would have been no Property Tax Relief at all. 

Now some are claiming the cap is an egregious failure. For purely political reasons those that are making that claim think the electorate will believe that it is all Chris Christie's Fault........


Although not perfect, what was passed was a compromise between the Governor and the States Democrats which gave some property tax relief, There is still room for more work to be done by both Parties to help Municipalities manage their affairs and provide services to Property tax payers including Small Businesses without raising taxes by eliminating waste that still exists around every corner. 

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Roberts, May Have Slyly Handed Election To Romney

As you have no doubt heard by now, the Supreme Court largely upheld Obamacare with Chief Justice John Roberts writing the majority 5 to 4 decision. Even Justice Kennedy called for the whole law to be thrown out, but John Roberts saved it.


John Roberts is playing at a different game than just about everyone else. While most are viewing a poker hand. He’s playing chess. 

Although we believe the concern is invalid, Roberts is concerned about keeping the Supreme Court above the partisan fray and damaging the Courts reputation


Roberts written opinion forces everyone to deal with the issue as a political, not a legal issue.


Roberts has expanded Congresses taxation power. By blocking the Commerce clause as an avenue for Congressional overreach, he has affirmed the Democrats are massive taxers.


Roberts opinion forces everyone to deal with the Health Care problem politically. Democrats are going to have a hard time running up to November claiming the American people need to vote for them to preserve Obamacare. The Law remains very unpopular with the American people. A vote for Health Care is now a vote for keeping a massive tax increase, we can not wait to see how that works out for them. 


Roberts decision also totally removes a growing left-wing talking point. Suddenly voting for Obama because of Supreme Court judges in November issue is gone. 


If they do not squander it Congressional Republicans have been handed an opportunity to try to shut down the individual mandate thereby Forcing Democrats on the record about the mandate. 

60% of Americans still agree with Republicans on the issue. The Democrats will continue claiming that individual pieces of Obamacare are quite popular. With John Roberts’ opinion, the repeal fight takes place on GOP turf, not Democrat turf. The all or nothing repeal has always been better ground for the GOP and now John Roberts has forced everyone onto that ground. 


It seems very, very clear to me in reviewing John Roberts’ decision that he is playing a much longer game, and can afford to with a life tenure. And he probably just handed Mitt Romney the White House. Read More Here

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July 19, 2012 6:00PM

     
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Obama Jobs Plan: Test A Job And Keep Unemployment Benefits

In an attempt to lower the unemployment rate the Obama Administration is tossing yet another plan at the wall and hoping it will stick. 

To that end the administration has announced the start of a new strategy to curb nagging unemployment by allowing Americans to keep their benefits while trying out a job. 

The program will be administered on the state level, with the Labor Department opening the application process Thursday for 10 model programs across the country. 

The program called 'Bridge to Work' was in fact a key part of the payroll tax cut package. Read More

The problem with the funding source is that the so-called payroll tax cut is not a tax cut at all. It is a cut in the payroll contribution into Social Security which in effect further de-funds Social Security and will lead to accelerating its path to insolvency. 

What incentive would there be for an employee to work hard and excel in the workplace, knowing that if fired or if they quit they will still collect a check? 

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Hunterdon County Considering Shared Services

Woodbridge Township has long been an example how multiple towns can share one central Municipal and School Administration.  

It is about time that other areas of the state followed suit. 

Consolidation initiatives are finally sweeping the state, with governor and legislature adding bipartisan backing New Jersey is finally getting serious about sharing services

Hunterdon County Freeholder Rob Walton and Readington Township Committeewoman Donna Simon, who is also a NJ State Assemblywoman, discussed shared services during a taxpayers forum. 

While spending caps, rising property tax appeals, and a sluggish economy are spurring elected officials to push for police department consolidation, school district regionalization, and other shared services in a movement that promises to reshape the way government services are provided in New Jersey, Hunterdon County is debating a groundbreaking proposal to merge the county’s 30 school districts and their 30 school superintendents, administrative staffs, and school boards into a single countywide district, with potential tax savings in the tens of millions of dollars for Hunterdon’s 128,349 residents. Read More

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House Republicans Succumb to Pressure to Pass Inferior Senate Tax Bill

By Joseph Hovanec Jr.

It is truly amazing how House Republicans were forced to cave to Senate Democrat and Obama's Demands to Scrap the full year $1000 Tax Cut already passed by the House, and instead pass the inferior and inadequate 60 day $160 tax cut passed by the Senate instead. 

The entire Main Stream Media and just about every Political Pundit condemned Republicans for taking a stance on Principal for the American People, forcing the GOP's hand to settle for less. The Democrats, led by Obama and their Media Lapdogs falsely reported to the American People that if Republicans did not pass the Senate Plan they would be responsible for increasing taxes. What kind of Math is that? 

The reality is that the Senate, controlled by Democrats would have been the cause of a tax increase because the House controlled by Republicans passed a 12 month $1000 tax cut and the Senate cut that back to a 60 day $160 tax cut. 

What is worse is the Media is reporting that the Democrats and Obama have won the fight. How can giving less to the American People be viewed as a victory?

It is a sad state of affairs when the Media can successfully create the illusion that a $160 tax cut is more for the American People than a $1000 tax cut. Whats worse is the majority of Americans actually believe they are getting something. How sad is that?

This tax is also being touted as a payroll tax cut which is in itself disingenuous. Most Americans equate payroll taxes with federal tax deductions. This cut is a reduction in the FICA tax deduction which is the only thing that funds Social Security. If they want to give a tax cut then cut the Federal Tax rate by 2% and leave Social Security alone. An extension of this tax cut no matter how long it is can only result in the acceleration of Social Securities path to insolvency. 

Not only is this a bad deal for the American People in the face dollar amount alone, it is a far worse deal for Seniors who are absent on the issue. 

I would bet anything that if George W Bush or any other Republican President advocated cutting funding to Social Security they would be accused of tossing grandma over the cliff in her wheelchair and we would see TV adds visualizing that very thing, but Obama can do just that and we hear not a word from Seniors. 

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Deadline For A Balanced State Budget Looms

The deadline for a signed and balanced State Budget is exactly 20 days away. Democratic leaders in the legislature are rumored to be considering introducing their own budget that would likely include tax hikes. All 120 seats in the State legislature are up for election on November 1st. That makes some wonder why Democrats would want to take ownership of a difficult budget. One political expert thinks it is actually a pretty good strategy.

"I think the Democratic strategy is a plan 'A' and a plan 'B,'" says Fairleigh Dickinson University political science professor Peter Woolley. "Plan 'A' in the Democratic strategy is to force (Governor) Chris Christie to raise taxes and then say, 'You see, he broke his campaign promise. He can't be trusted.'"  Read More




By Joseph Hovanec

 

You see, that type of deliberate action or inaction is typical Party Politics. The Majority does not really care  about taxpayers, if they did they would not have raised taxes 156 times over the two years preceding the Election of Chris Christie as Governor, they only care about holding onto or regaining their power, placing every taxpayer at their mercy. Make no mistake, they will have none. 

Every taxpayer should first and foremost make sure they vote on November 1st. Every taxpayer should also make sure that they have their tax bill in hand when they enter the voting booth. If they are happy with the status-quo that the majority in Trenton seem to love, they will vote for them, If they want real change in NJ they will have to decide if the candidate they are thinking of voting for is working to lower the tax bill they are holding in their hand or are they obstructing efforts to lower their tax burden. Once that has been determined their choice should be clear. 

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Senate Dems Shun Governors Relieve For Municipalities

Unionized Public Employee Saddle Municipalities With Hundreds Of Millions Of Dollars In Sick And Vacation Time Payouts. 

Senators Tom Kean, Jr. (R- Union) and Joe Kyrillos (R- Monmouth) said that Legislative Democrats are seeking to preserve jackpot payouts for municipal employees at the expense of New Jersey's Taxpayers

“Current employees, who are left untouched by the Democrats’ sham sick leave reform bill, have racked up $825 million in unused leave time that will be paid for by the taxpayers,” said Senator Kean. “There is no excuse to allow these employees to continue to accumulate time that may be cashed out upon retirement on top of that $825 million, as has been proposed by Legislative Democrats.”

“There’s no defensible reason to add to the taxpayers’ burden,” said Kyrillos. “Democrats seem to be genetically incapable of embracing common sense reform.”  Read More

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EPA's Train Wreck Threatens To Derail The Economy

During a speech on small business at Cleveland State University , Obama described a goal of “knocking down barriers that stand in the way of your growth.” Unfortunately, his EPA couldn’t be more in the dark about how to implement that practice. The EPA is poised to adopt more than 30 new, major regulations and over 170 major policy rules in the next several months.

Even with 14 million Americans out of work and an economy still searching for light at the end of the tunnel, the EPA is poised to enact a series of back-door mandates that will stifle economic growth. And with the speed that this runaway train is traveling, people in every state should be scared of the “Train Wreck” headed towards a town near you.

Unfortunately, the large majority of Americans won't realize or even understand the impact of the EPA’s “Train Wreck” of new regulations on jobs, the economy and price of essential energy until it’s too late.

The truth is, the EPA itself doesn’t know what these regulations might cost to implement, although various outside analysts seem to agree that, at minimum, the 10 major rules that the EPA issued in 2010 could cost the economy at least $23 billion and nearly one million jobs. Read More

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Electric Car’s Tax-Free Ride May Soon Come To An End

Well at least it was fun while it lasted. The tax-free joyride electric and hybrid-electric vehicle owners have been enjoying while cruising the highways and byways of America may soon be a thing of the past.

A handful of states and the U.S. Government may look at "vehicle miles traveled" (VMT) standards and other fees for plug-in vehicles to make up for the tax revenue not collected via gasoline taxes.

While electric vehicle advocates say it is too early to tax the emergent EV industry, VMT supporters say consumers pumping gasoline into their vehicles shouldn't have to shoulder all of the tax burden for road and highway repair and maintenance. Read More

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Governor Signs Two NJECPAC Supported Legislative Bills Into Law

Governor Christie Signs NJECPAC Supported Legislation

NJECPAC is happy to report that Governor Chris Christie has signed two NJECPAC Supported Bills into law providing long needed tax relief to small businesses in New Jersey.

The enactment of these two new laws sends a welcome signal to businesses across New Jersey that the Governor and Legislature can work together to enact small business tax relief. The Legislation signed into law are:

S-2753 (Whelan, Madden)/A-3869 (Greenwald, Milam), which enacts single-sales-factor tax reform, which ends a tax disadvantage for New Jersey companies that sell their products and services here, but also have in-state employment and property. Previously, a New Jersey company with employees and property here paid more in taxes than an out-of-state company that had the same level of in-state sales, but little employment or property here. 

S-2754 (Buono, Greenstein)/A-3870 (Greenwald, Barnes), which permits businesses such as LLCs, partnerships, S corporations and sole proprietorships to deduct losses in one year from income in future profitable years. These companies pay gross income taxes, and this type of loss carry-forward was only available to companies paying corporate business taxes. In addition, the measure would allow these businesses to offset a gain in one income category from a loss in another income category. For instance, a company could offset gains in an LLC from losses in a partnership. Under current law, losses can only be used to offset income generated from the same business unit.

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W-2 Reporting Requirement in Health Care Law

The Internal Revenue Service (IRS) March 29 issued interim guidance on a provision in the Patient Protection and Affordable Care Act that will require employers to report the cost of coverage under an employer-sponsored group health plan on each employee’s W-2 form. The reporting becomes mandatory in 2012 and will have to be included on 2012 W-2 forms. 

The Guidance covers how to report the information, what coverage to include and how to determine the cost of the coverage. The IRS stressed that the reporting to employees is to inform them of the cost of their health coverage and the amounts reportable are not taxable.

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1099 REPEAL SIGNED INTO LAW

On April 14, 2011, President Obama signed H.R. 4, the Small Business Paperwork Mandate Elimination Act of 2011, into law. This legislation repeals the expanded IRS 1099 reporting requirements enacted as part of the healthcare reform law HR 3590. This is a major victory for small businesses around the country that would have been severely impacted by the new requirements.

The House of Representatives passed H.R. 4 on March 3, 314-112. After considering an alternative repeal bill, the Senate passed the House approved bill on April 5, 87-12. To see how your Senators voted click here or Representative click here.   Read More at IECI.org

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Senate Majority Again Ignores Property Tax Relief In New Jersey

NJ Senate Chamber

Senate President Fails To Act On Any Property Tax Relief Legislation, opting instead to continue picking petty fights with the Governor.

Once again the Democrat Majority led by Senate President Steve Sweeney failed to post any Property tax relief legislation for a vote. How long will NJ Residents have to wait for relief from exorbitant property taxes. Tax relief first has to be passed by the Senate and Assembly before the Governor can sign it into law.

Responding to the lack of action on any tax relief bills pending before the State Senate. Senate Republican Leader Tom Kean, Jr. said Senate leadership must provide taxpayers with an explanation: “Senate Leadership has thrown away yet another opportunity to do the right thing for New Jersey taxpayers.”

NJ Senate President
 Steve Sweeney (D)



“New Jersey residents deserve an explanation from those who control the agenda in the Legislature as to why committees were not called to address well-connected lobbyists helping themselves to the public pension trough, municipalities being forced to bond for jackpot sick leave payouts for public workers, and legislation that would enable towns and counties to share services.”  Read More

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Senate Passes Repeal of 1099 Mandate in Health Care Bill As Another Looms

The U.S. Senate has passed H.R. 4, that includes the repeal of the expanded 1099 reporting requirement included in the Patient Protection and Affordable Care Act.

The health care law mandated that, beginning in 2012, businesses would have to file a 1099 to ALL Vendors, both incorporated and unincorporated, to which they pay at least $600 annually for goods and services.  

The president is expected to sign the measure to remove the requirement from the Health Care bill H.R.3590. However, it is only a partial and possibly temporary victory. The president has included a portion of the requirement in his budget that is currently being debated in Washington.

It’s time this Administration gets serious about helping small businesses by eliminating other oppressive taxes affecting small business, such as the 3% Withholding tax on all Federal Construction Contracts and the business killing Estate Tax that puts many businesses out of business resulting in jobs lost when the heirs of an estate involving a business have to cut back operations or close the business just to pay the Federal Tax.

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Republican Budget Plan to Eliminate National Debt!

House Budget Chairman Paul Ryan,
holds a copy of his budget proposal

Rep. Paul Ryan presents the Republican's budget proposal that will eliminate the national debt and preserve entitlement programs like Medicare and Social Security.

Speaking just hours before the spending plan gets its formal introduction before Congress, Ryan, head of the House Budget Committee, said the debt will peak at 74.5 percent of gross domestic product in 2014 and then drop from there.

"We've got to show the country that we can get this situation under control and grow the economy, and that's what we're doing," he said. "So whether (Democratic Senate Majority Leader) Harry Reid is willing to pass this bill or Barack Obama is ready to sign it, I don't know the answer to that question. Read More

By Joseph Hovanec Jr

Meanwhile Obama spoke to the media after meeting at the White House with Leaders of both parties. He indicated that the proposals presented thusfar to avoid a government shutdown are non starters.

It is a sad state of affairs when the President and Democrats are insisting on compromise now when they were not willing to compromise while they had total control of both houses and the White House. 

They also failed to pass a budget last year when it was due and they had that control. They could have passed a budget at any time last year and there would have been nothing the Republicans could have done to stop them. Instead of doing their job they chose to ignore the budget while they played politics in their failed attempt to hold onto power in the House. 

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Dem Leadership Panders For Votes Ahead of Property Tax Relief

Tell Your Legislator Its Time To Vote On The Governors Property Tax Reform Tool Kit.

Tom Kean: “Democrats Choose Political Theater Over Property Tax Relief”



Senator Tom Kean Jr.

Senator Tom Kean, Jr. said that Democrats’ failure to pass the remaining toolkit legislation puts election year politics ahead of New Jersey property taxpayers:

“Rather than vote on ways to help property taxpayers, Democrats have chosen to use the Senate’s time to pick an election year fight with the Governor,” Kean said. “The Legislature’s calendar has been hijacked for political theater instead of taking on the significant challenges facing our state. Senate leadership should be holding votes on the toolkit bills they’ve ignored for a year.” 

Senate President Steven Sweeney
Assembly Speaker Sheila Oliver

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