Saturday, October 27, 2012

State Senator Steven Oroho - please help change the minimum corp. tax law.

NJ State Senator Steven Oroho                            10/27/12
115 Demarest Rd. suite 2B
Sparta, NJ 07871



Dear State Senator Steven Oroho,

Greetings on this glorious day!!!  I hope that you and the loved ones are in good health and are getting along.  Good health is such a wonderful blessing from the good Lord, our Creator Lord!!!    Please remember that we humans are created by our Creator Lord, in His image, with inalienable rights!  Also, please remember that we humans are more than flesh and blood!  How is your spirit on this glorious day?  I am writing to you on this glorious day to ask for your help to help eliminate, or radically reduce, the minimum corporation tax.  Right now corporations, both new and old, are subject to the minimum corporation tax law, which is not conducive to keeping struggling businesses alive, nor keeping small businesses in New Jersey.  Corporations must pay $500 (the corporate minimum tax) to the State of New Jersey even if they lose money, break even, or make small profits.  How can this help businesses that are struggling?  Or how does this help people thinking about starting a small business in New Jersey?

To illustrate the negative impact that the minimum corporate tax has on a struggling business, or businesses that just break even, or even on businesses that are small but are improving yearly, please  check out two scenarios below:

Example #1:
Year in existence                  profit (before paying min. corp. tax)
         1st                                             $125
         2nd                                            $183.47
         3rd                                             $269.30
         4th                                              $395.28
         5th                                              $580.20
         6th                                              $851.62
         7th                                              $1,250

total profit (before min. corp. taxes):     $3,654.87
taxes owed (min. corp. taxes) = $500 X 7 years = $3,500
NJ net tax rate (from NJ only) = 95.763%

Example #2:
Year in existence                     profit (before paying min. corp. tax)
         1st                                                $165
         2nd                                               $247.62
         3rd                                                $371.61
         4th                                                $557.70
         5th                                                $836.96
         6th                                                $1,256.05
         7th                                                $1,885

total profit (before min. corp. taxes):       $5,319.94
taxes owed (min. corp. taxes) = $500 X 7 years = $3,500
NJ net tax rate (from NJ only) = 65.7902%

Although the two different corporations in the above examples are small, and yet growing, they are subjected to enormous tax burdens from the State of New Jersey alone (they'd still need to pay the federal government, I believe).  The minimum corporation tax law doesn't make much sense to help encourage new small businesses, and probably helps destroy businesses that are struggling.  Please help end the minimum corporation tax law, or bring the minimum down to maybe $35/year.  The minimum corporation law, I believe, discourages new small businesses from starting and should be changed as soon as possible.  Please help change the minimum corporate tax law in New Jersey!

Thank you very much for all your help.  Hope that you and the loved ones have a joyous and peaceful day.  May the good Lord, our Creator Lord, bless you and the loved ones with love, joy, peace, and patience!

Sincerely,


Ken Miller
Main St. Rm. 103
still one of the working poor!

Jesus is the Holy One of Israel!!!

All glory, honor, praise, and thanks be to our Creator Lord - maker of heaven and earth!!!!!


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