New tax bill could shut down small family restaurants in NJ
Almost every New Jersey owned-and-operated restaurant, as well as many New Jersey businesses, has faced monumental issues with the pandemic, supply shortages and increased costs due to inflation, fuel prices and major personnel issues.
Because of these obstacles, most small restaurants and family restaurants are literally hanging by a thread.
If they didn’t have enough to worry about, these restaurants can add a proposed tax increase to the pile that would certainly be crippling for these New Jersey businesses.
Due to the need for Congress to offset the costs of climate and social spending, Congress wants to expand and recoup $252 million from the Net Income Investment Fund otherwise known as NIIFT.
NIIFT is currently a tax on passive income like rental properties and stock dividends. This new July 2022 proposal would make the NIIFT a more active tax and include limited liability companies, sole proprietorships and partnerships.
Raising the NIIFT appears to be a popular way for Congress to get more tax revenue. Adding this increase to the problems currently facing small restaurants and family restaurants could be the straw that breaks the camel’s back to keep our favorite restaurants in business.
The National Restaurant Association does not expect the tax increase in year-end tax legislation, but the measure passed the first round of tax increases in the NIIFT in early 2022, but the measure n never became law. Let’s hope that won’t be the case.
I will continue to monitor the situation and hope our restaurants survive. Crossed fingers.
The above post reflects the thoughts and observations of New Jersey 101.5 weekend host Big Joe Henry. All opinions expressed are those of Big Joe.
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