club_cafe: New Jersey Taxing Investment Clubs

trok415 on

Ira,

I think that the fact remains that the State wanting to tax clubs at all is ludicrous. We are a small group of investors who I agree won't immediately be subject to the tax right now due to the $25,000 limit which is proposed now.

It is important to note that we will be subject to this Tax due to the fact that we are a partnership in most cases which most States exempt Clubs.

Please read my testimony and also those of Gayle Freeman, and Joe Smith. We all speak to the issue of the unfairness of Clubs being lumped together with Business Partnerships.

Clubs are not a business. There purpose is Education. Education of members and education of the public who I might add is in desperate need of education based on the recent Corporate debacles, and accounting scandals.

My personal belief for wanting Clubs exempted is that this Bill is excessive and punitive.

Again we are not a business and therefore not be grouped in that business class.

Taxes go up and as far as I can see never go down. As Business partnerships in the State are taxed more and more under this bill we will also be taxed at a higher rate.

Why would the State want to punish its Investment Club members who if you did a study have been already punished by the market crashing and so have our portfolios.

Its like throwing a stone on the back of a drowning man.

I have contacted my Senators and Assembly men to have Clubs not be included in the bills.

I saw that the Appropriations Committee was receptive to changing the Bill as written but I think we did not get our point accross that we wanted to be exempted like members of clubs in other states.

Thank You for your time and interest in this.

Although some might feel that the bills are fair as written myself and many other club members feel it excessive and punitive.

As I stated in my testimony. I think the State would would gladly pat the amount that this Tax would take in to educate iis citizens in how to invest properly. We have helped mant in the New Jersey Model Club in Millburn and I am sure will help many in the future.

Respectfully,
Ted Mechnick

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