The casinos of Atlantic City were going through a rough phase due to rising taxes on the gaming industry, which had led to closure of four casinos within 2014 alone. Close on the heels of this shutdown even the city’s oldest casino Trump Taj Mahal announced plans of closure which will lead to job loss of 2500 employees’ by the end of the year.
The news alarmed the city officials and now new legislation have been passed with new taxes to help revive the state’s dying casino industry. New tax reforms have been announced by state legislature to give relief to bankrupt gambling firms in business to entertain local community and tourists. This announcement by city Mayor Don Guardian was greeted with enthusiasm by city’s residents as closure of more casinos would put an end to main revenue earners of the city.
Tax likely to save Trump Taj Mahal from closure
The tax legislation which is awaiting clearance from state Legislation is likely to provide tax relief to the tune of around a few thousand million to the owners of Trump Taj Mahal (TTM) which can be helpful in reviving business. Though the beleaguered casino’s management had stated that it will close doors by November it has managed to extend services and is likely to shut by December 20, 2014. New York based debt holder of Trump Entertainment had asked for several more policy changes from the state’s legislative authorities to keep the casino running but he is likely to get respite only from state and local taxes.
The program was created by Senator Stephen Sweeny and has been agreed by Atlantic City’s local administrators and taxation authorities to save its casinos and gaming industry from shutting down completely. While Trump Taj Mahal has agreed to negotiate with the trade unions to form an amicable settlement for worker’s benefits the Pilot program is also making other legislation to open others. Under this legislation two state programs of Grow NJ credits and Economic and Redevelopment Growth incentives will be used to revive Revel Casino and help Brookfield Asset Management to reopen the casino hotel.