New proposed tax bill could close NJ small & family-owned restaurants

Almost all of New Jersey’s owned and operated restaurants, as well as many New Jersey businesses, have faced monumental problems with the pandemic, supply shortages and increased costs because of inflation, fuel prices and major staffing problems.

As a result of these obstacles, most small and family-owned restaurants are literally hanging on 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 to these New Jersey businesses.

As a result of Congress needing to offset the costs of climate and social spending, Congress wants to expand and grab $252 million dollars from the Net Income Investment Fund otherwise known as NIIFT.

NIIFT is currently a tax for passive income like rental properties and stock dividends. This new July 2022 proposal would make NIIFT a more active tax and include LLCs, sole proprietorships and partnerships.

The increase in NIIFT seems to be a popular way for Congress getting more tax revenue. Adding this increase on top of the problems that small and family-operated restaurants are currently facing could be the final straw in keeping our favorite restaurants operating.

The National Restaurant Association doesn’t expect the tax increase in year-end tax legislation but the measure has passed the first round of tax increases in NIIFT in the beginning of 2022 but the measure never became law. Hopefully, it won’t.

I will continue to monitor the situation and hope that our restaurants survive. Fingers crossed.

The post above reflects the thoughts and observations of New Jersey 101.5 weekend host Big Joe Henry. Any opinions expressed are Big Joe’s own.

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