Retailer Says New N.J. Tax Will Cut Jobs

AP | 7-10-02 | n/a

[Temple Owl]

Retailer Says New N.J. Tax Will Cut Jobs

TRENTON, N.J. - The corporate parent of Macy's and Bloomingdale's said it will cut jobs and possibly close stores, and blamed a new tax that more than doubles what the chain pays to New Jersey.

Federated Department Stores Inc. will also curtail hiring and end plans to remodel or expand existing stores, the company chairman said yesterday. The announcement is the first such complaint since the law was approved last week.

The retail chain claims it paid $4.4 million in state corporate taxes last year. Now, thanks to a law Gov. James E. McGreevey needed to balance the state budget, Federated says it will pay $10 million.

"I can tell you unequivocally that we cannot and will not absorb a $5.7 million New Jersey tax increase without taking commensurate measures to reduce expenditures there," Federated Chairman James M. Zimmerman wrote McGreevey.

The measures include plans to cut up to 60 union jobs at a distribution center, Zimmerman said. He said the company is also reviewing operations at all of its New Jersey locations.

"From this, we anticipate there will be store closings," Zimmerman said.

State Treasurer John E. McCormac fired back a letter demanding Federated release detailed financial records, including all net profits and salaries for top executives.

Federated should also disclose its revenues and net profits from several of the old regulations.

AP

[Temple Owl]

To whom did Federated (Bloomingdales and Macy's) make political contributions? Just curious.

[A Ruckus of Dogs]

Macy's and Bloomingdales should just move to Bermuda.

[KC_Conspirator]

Screw Bloomingdales and Macy's. If I am correct, I believe that the owner of one (or both) of these department stores came up the wonderful idea of payroll tax deduction during WWII for the FDR administration. (Onward Socialism!) Before this, everyone had to file their own taxes so they knew how much they garnered and how much the government took away. That meant that tax increases were met with frowns. But that all changed with their automatic deduction idea.

[Dialup Llama]

Who is the gen-ass who thinks its a good idea to raise taxes in a recession?

[Tribune7]

May the RINO corporate suits in other states take heed of what has befallen their "won't support Schundler" brethren in Jersey!

[KansasGirl]

It amazes me that this does not anger people more. Tax withholding INFURIATES me!! I NEVER even see my own wages! ERRRR!!

[Blood of Tyrants]

This story MUST be bogus. Every politician knows that taxes are good and that increasing them has absolutely no effect on the people or the business community.

[from occupied ga]

State Treasurer John E. McCormac fired back a letter demanding Federated release detailed financial records, including all net profits and salaries for top executives.

Federated should tell McCormac to go straight to hell and move their resources to the most profitable state.

[Temple Owl]

May the RINO corporate suits in other states take heed of what has befallen their "won't support Schundler"

Nicely put. I think that says it all.

[Temple Owl]

Federated should tell McCormac to go straight to hell and move their resources to the most profitable state.

Federated should have backed Shundler. The chickens are coming home to roost.

[tcostell]

Actually, this is easy to fix. We just have to make it illegal for companies to fire anyone. Or failing that, make it legal to fire them, but they have to keep paying them until the employees get another job.

Problem solved. I don't know what the fuss is all about.

[Constitutional Patriot]

"State Treasurer John E. McCormac fired back a letter demanding Federated release detailed financial records, including all net profits and salaries for top executives."

Communist!!!!

[Blood of Tyrants]

You've read Atlas Shrugged, haven't you?

[tcostell]

Actually, I read Atlas Shrugged so long ago I can barely remember the details. I'm just a humble devotee of the Austrian school of Economics.

I'm actually relieved that no-one has taken my comment seriously. You never know these days.

[from occupied ga]

Federated should have backed Shundler

Federated has a pretty large presence here in GA, but I can't ever recall reading about who they supported in elections. How did you find out what they did?

[Temple Owl]

I didn't. I guess I should not have made assumption.

[dead]

May the RINO corporate suits in other states take heed of what has befallen their "won't support Schundler" brethren in Jersey!

The RINO political suits in NJ are getting exactly what they want from McGreevey – more money in their hands, and more people dependent on the government for sustenance.

Schundler threatened to the ruin the plans of both corrupt, big-government parties in this state.

[Tribune7]

Thank you

[Tribune7]

Maybe the corporate suits will stop being RINOS and start, finally, supporting conservatives.

[dead]

Could happen, I guess, but most of them are too stupid to realize how much they hurt themselves.