Asm. Scharfenberger “Now’s Not the Time for a New Health Tax”

Middletown, N.J. – Assemblyman Gerry Scharfenberger (R-Monmouth) is speaking out against a recent bill seeking to impose a new “health tax” throughout New Jersey. This legislation comes at a time when businesses, residents, low-income families, and countless others are severely struggling to make ends meet in the wake of crushing financial waves due to the COVID-19 pandemic:

“These bills (S2676/A4389) would assess a new tax (2.75%) tax on every health policy sold in New Jersey, impacting an incalculable number of our residents and business,” says Scharfenberger. “This will end up costing each policyholder an estimated $600 per year in annual premiums. Monies from the tax would then be deposited into a new “Health Insurance Affordability Fund” or, in other words, the abyss that is Trenton’s budget!”

New Jersey’s senior citizen population, an estimated 500,000 individuals, will also feel the weight of this tax as Medicare Supplemental Plans will fall victim as well:

“No one should have even more financial burdens put on them, especially now and especially our seniors – it’s outrageous to do so,” Scharfenberger continued. “If these bills become law, it is going to dramatically increase the cost of health insurance for every business, organization and non-profit in the state, as well as for local and county governments.  The latter will be paid for through, you guessed it, higher property taxes.”

It is no secret that New Jersey was in dire fiscal shape prior to COVID-19, yet the unprecedented pandemic has dug us further into financial quicksand. However, instead of seeking out-of-the-box avenues to help, Trenton is choosing to fall back to its old habits of pulling more money from its ever-shrinking pool of residents and businesses:

“Given the enormous strains in New Jersey with the lockdowns, lost jobs, increased business taxes, and overbearing regulations, the last thing we should have to deal with is an elective surcharge tax on existing insurance policies,” concluded Scharfenberger. “We need to help to recover, and begin to grow, not add more costs that will drive even more businesses and residents out of the state altogether.”