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New Jersey Has the Highest Combined Corporate Tax Rate

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the staff of the Ridgewood blog

Ridgewood NJ, according to the Tax Foundation the Tax Cuts and Jobs Act (TCJA) significantly reduced the U.S. federal corporate income tax rate from 35 percent to 21 percent,  making the U.S. more competitive with other developed nations.

However, it’s important for lawmakers to remember that corporate income taxes at the state level also contribute to the overall tax burden on corporate profits.

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Senator Paul Sarlo, chairman of the Senate Budget and Appropriations Committee , “The Millionaires’ Tax Could Make Economic And Fiscal Conditions Worse”

the staff of the Ridgewood blog

Woodridge NJ, Senator Paul Sarlo, the chairman of the Senate Budget and Appropriations Committee, issued the following statement today after the committee heard from the Office of Legislative Services and the State Treasurer on the fiscal and economic conditions that will shape the state’s Fiscal Year 2020 budget plan:

“This is a pivotal time for public finances in New Jersey, which makes our work on the state budget as important as ever. We face both immediate and long-term fiscal challenges that can no longer be ignored or deferred.

Continue reading Senator Paul Sarlo, chairman of the Senate Budget and Appropriations Committee , “The Millionaires’ Tax Could Make Economic And Fiscal Conditions Worse”
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Minimum Wage: Urgent Concerns Of Small Business Community Not Heard

the staff of the Ridgewood blog

Ridgewood NJ, NJBIA President and CEO Michele N. Siekerka issued the following statement regarding the Assembly and Senate passage of the $15 minimum wage bill (A-15/ S.15) today.

“New Jersey’s small business community wrote thousands of letters to our lawmakers and testified how they will struggle, stagnate or fail when this legislation is signed by the governor. With today’s passage, the urgent concerns of this community have not been heard.

“For years, NJBIA has said any increase in the minimum wage should be done responsibly. This legislation falls woefully short of that standard, and our small businesses will bear the brunt of it. In the first year alone, they will see a 35 percent increase to their expenditures, when including increased payroll taxes as a result of the wage increase.

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Conagra Brands Moves Jobs Out of New Jersey

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the staff of the Ridgewood blog

Parsippany NJ, Conagra Brands, the food giant that purchased Parsippany-based Pinnacle Foods for nearly $11 billion in October, is the second company in as many weeks looking for greener pastures . The company is closing a pair of Pinnacle facilities, according to a federal WARN notice — potentially costing 500 people their jobs.

Conagra, Chicago-based maker of products such as Healthy Choice and Orville Redenbacher’s, said in two separate notifications that it is closing office facilities at 399 Jefferson Road in Parsippany and 121 Woodcrest Road in Cherry Hill. The Parsippany property had served as headquarters for Pinnacle, maker of brands such as Duncan Hines, Vlasic and Birds Eye.

WARN Notice :  offers protection to workers, their families and communities by requiring employers to provide notice 60 days in advance of covered plant closings and covered mass layoffs. This notice must be provided to either affected workers or their representatives (e.g., a labor union); to the State dislocated worker unit; and to the appropriate unit of local government.

Conagra Brands, Inc.  Parsippany  Date 03/22/2019   layoffs 308
Conagra Brands, Inc.  Cherry Hill  Date 05/24/2019    layoffs 196

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NJ Lost Honeywell’s HQ Because of Murphy’s Anti-Business Agenda

the staff of the Ridgewood blog

Trenton NJ, Senators Joe Pennacchio (R-26) and Anthony Bucco (R-25) released the following statement in regards to today’s reports that Honeywell, a Morris Plains-based company, is moving its global headquarters to North Carolina.

Sens. Joe Pennacchio and Anthony Bucco said Gov. Murphy’s bad-for-business policies are driving companies like Honeywell out of state. (Wikimedia)
Morris Plains is a municipality within Senator Pennacchio’s Legislative District.

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Pennacchio: Warns No Way to Attract Amazon

Amazon Introduces New Tablet At News Conference In New York

July 2,2018

the staff of the Ridgewood blog

Trenton NJ, In response to Trenton Democrats various proposals to increase taxes on New Jersey’s residents and businesses by billions of dollars this year, Senator Joe Pennacchio (R-26) issued the following statement:

In response to Trenton Democrats various proposals to increase taxes on New Jersey’s residents and businesses by billions of dollars this year, Sen. Joe Pennacchio issued the following statement. (SenateNJ)
“Recently New Jersey offered Amazon 5 billion dollars to locate its headquarters in Newark. It is difficult to believe that as New Jersey offers Amazon a 5 billion dollar incentive with one hand, it is pinching their pockets and all business pockets in New Jersey with the other hand. Perhaps they were hoping Amazon would not notice.

“This type of business incentive/non-incentive insanity simply reinforces New Jersey as the least business-friendly state in the country. The billion dollars in new employer taxes proposed will wipe out any goodwill New Jersey may have earned through corporate giveaways.

“This is not a way to attract and retain businesses in New Jersey. This is not the type of government the citizens of New Jersey deserve.”

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Democrat N.J. Senate President wants to increase in the state’s corporation business tax rate

Senate President Sweeney_theridgewoodblog

March 7,2018

the staff of the Ridgewood blog

Trenton NJ, New Jersey suffers from the worst business climate in the United States . If not for the close proximity to New York in the north and Philadelphia in the south there would be virtually no business here at all . Jobs and companies have fled the Garden State non stop since the Kean Administration and yes it can only get worse. Democratic state Senate President Stephen Sweeney said on Tuesday that state coffers can get the money they need by enacting a 3 percent surcharge on corporate income.

The increase in the state’s corporation business tax rate from 9 percent to 12 percent on businesses with more than $1 million in income is the Democrats’ latest counterpunch to federal tax reform that slashed taxes on corporations but limited the state and local taxes residents can deduct.

It seems New Jersey Democrats will not rest until the very last business has left the state .

In 2017 the Tax Foundation rated New Jersey’s Business Climate the worst in the nation. The Tax Foundation said “New Jersey, for example, is hampered by some of the highest property tax burdens in the country, is one of just two states to levy both an inheritance tax and an estate tax, and maintains some of the worst-structured individual income taxes in the country.”

In the 2017 Tax Foundation State Business Tax Climate Index , New Jersey scored and Overall Rank of 50 (Dead Last) Corporate Tax Rank 42, Individual Income Tax 48, Sales Tax 45 , Unemployment Insurance Tax 25,Property Tax Rank 50 (Dead Last again) .

So it is no surprise to everyone except New Jersey Democrats , the when moving company United Van Lines released its 36th in 2014 annual study of customer migration patterns, analyzing a total of 125,000 moves across the 48 continental states in 2012. The study provides an up-to-date, representative snapshot of overarching moving patterns in the U.S., and reveals a mass exodus from the Northeast. At No. 1, New Jersey has the highest ratio of people moving out compared to those moving in. Of the 6,300 total moves tracked in the state last year, 62% were outbound.

In 2016 the same annual moving survey from United Van Lines reveals the states where the most people move from and again for 2016, New Jersey holds the top honor in the latter category for the fifth year running.
Far be it from us to speculate, but CNN affiliate News 12 New Jersey suggests the exodus may be related to “common complaints from state residents about high property taxes, the recent gas tax hike and the poor conditions of state roads.”

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Federal Tax Reform Might Push New Jersey to Reform Tax System

Phill Murphy -Sara Medina del Castillo

November 20, 2017
Joseph Bishop-Henchman

Ridgewood NJ, New Jersey has long been the punching bag of state tax scholars. The state has the worst state business tax climate of the 50 states and the third highest overall state and local tax burden (behind only Connecticut and New York). Any New Jersey resident knows they pay the highest property taxes in the country, but other taxes are also high: income taxes (5th highest top rate), corporate taxes (6th highest in collections), sales taxes (16th highest in collections), cigarette taxes (10th highest), and gas taxes (8th highest) are all high, and New Jersey is currently one of two states with both an estate and an inheritance tax (the estate tax half is scheduled to be repealed in 2019, but we’ll see if the new Governor changes this). The state has more outbound net migration than any other. One bright spot: you can drink away your sorrows, with a mere 12-cent per gallon beer tax, lower than 40 other states.

The state and local tax deduction considerably reduces the sting of New Jersey’s tax bill, and it’s no coincidence that four of thirteen Republican nay votes on the House tax bill came from New Jersey representatives. New Jersey Senate President Steve Sweeney and newly elected Governor Phil Murphy, both Democrats, had pledged to make a higher income tax on millionaires a key early priority in 2018.

Now, however (Politico):

“We’re going to have to re-evaluate everything” if a federal bill repealing the state and local tax deduction becomes law, New Jersey Senate President Steve Sweeney said Wednesday in Atlantic City. Just days before, Sweeney had said he would make passage of a millionaires tax his chief priority in the new administration. “I’m just saying that what’s happening in Washington is concerning the hell out of me,” he added.

The changes to SALT are likely driving the reassessment. As ITEP, a group that promotes millionaires’ taxes, has explained, the state and local tax deduction “makes state income tax hikes a good deal,” since “income and property taxes are effectively less costly to state residents than are sales and excise taxes.” Take it away and New Jersey residents must pay full freight for their state and local governments. That may explain the seemingly contradictory rhetoric that millionaires taxes won’t affect the economy but eliminating the SALT deduction will be terrible.

If federal tax reform prompts New Jersey to overhaul its tax code, it’s long overdue. There are 244 townships, 265 boroughs, 49 cities, 15 towns, 3 villages, and 677 school districts. The three-member board running Tavistock, NJ, is a majority of the borough’s 5 inhabitants. A 1912 article recounted the history of New Jersey tax administration, which is a seemingly unending tale of bloated local government, corruption, and inequitable assessment. In the 1960s, railroad scholar George Hilton noted that the state’s practice of loading its property tax burden onto interstate commerce had ruined the viability of every railroad crossing the state. A 2003 state report dryly observed that state revenues had grown 1,700 percent since 1970, compared to population growth of 19 percent and inflation growth of 483 percent. The state adopted a sales tax in 1966 and an income tax in 1976, both with promises that they would be used to reduce crushing property tax burdens. Today New Jersey still has the nation’s highest property taxes, but with high income and sales taxes as well. It’s probably time for a rethink.

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Murray Sabrin : Phil Murphy and Democrats are legal versions of Willie Sutton

Murray Sabrin

 

Murray Sabrin
Professor of Finance at Ramapo College

Regarding “State senate president plans to push tax bill,” (Nov. 9, page 1A). The people of New Jersey spoke loud and clear on election night. They want state government to spend more of their money. Not really their money, just upper income folks who make up a small percentage of the population. And they want Trenton to expand its already overbearing micromanagement of the economy.

Senate president Stephen Sweeney announced that he will put a “millionaire’s tax” on the front burner when the legislature convenes after Governor-elect Phil Murphy takes office in January.

Raising taxes on millionaires is another example of why government is like Willie Sutton, the notorious bank robber who was asked why he robbed banks, he replied, “That’s where the money is.” Phil Murphy and Democrats are legal versions of Willie Sutton.

Higher taxes on upper income taxpayers will cause any out of state high-income individual, business owner, or corporate executive to think twice about relocating to New Jersey. In other words, we will never how many upper income folks will not move to New Jersey because of the highest marginal taxes Murphy is so hot to increase. In addition, how many people and businesses will leave New Jersey because of higher income taxes? We will soon find out.

The proposed tax increases on millionaires will eventually hit middle-income families, because that is how big government proponents operate—tax the smallest number of families first, then go after where the big bucks are, the middle class.

As H.L. Mencken remarked decades ago, “Democracy is the theory that the common people know what they want, and deserve to get it good and hard. “

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Assemblywomen Offers Straight talk on Tax Reform

Holly Schepisi and Bob Auth

photo of Holly Schepisi and Bob Auth

October 22,2017

the staff of the Ridgewood blog

River Vale NJ, assemblywomen Holly Schepisi  reiterates our thoughts on tax reform and the poor position New Jersey is in being one of the highest taxed states in the nation. ”  Thinking about property taxes, New Jersey and the federal property tax deduction. New Jersey residents pretty much get hosed in every way possible when it comes to taxes. Residents in the communities I represent and the other residents of Bergen County currently pay about 30 percent of the entire NJ State Budget and receive back less than 3 percent of that money. At the federal level New Jersey only gets back 74 cents for each $1 it sends to Washington, making it the lowes…t reimbursement in the country.”

“As a result of ridiculously unfair school funding formulas, our residents pay the highest property taxes in the nation. The ONLY tax relief our residents have had is the ability to deduct our property taxes from our federal tax returns. Now the US Senate has voted to eliminate this deduction. I wholeheartedly disagree with the Senate Republicans on this issue. However I also put blame at the feet of the NJ Democrats who have controlled the New Jersey legislature for 16 years and our US Senators who have been controlled by the Democrats since 1982 (other than a short several month stint by Jeff Chiesa). How and why do we have the highest property taxes in the nation? Why do we receive the least amount of funding back from the federal government? Why won’t my Bergen County colleagues on the other side of the aisle fight alongside me for fairer funding of OUR residents? We cannot continue doing things the same way in this State. It is reaching a breaking point for our working middle class and our seniors. I hear campaign slogans about suburbs having to “pay their fair share.” We pay well beyond our “fair share” and we all must stand up together and fight back while we still can.”

District 39 – (Bergen and Passaic)  Bloomingdale, Closter, Demarest, Dumont, Emerson, Harrington Park, Haworth, Hillsdale, Mahwah, Montvale, Norwood, Oakland, Old Tappan, Park Ridge, Ramsey, Ringwood, River Vale, Saddle River, Upper Saddle River, Wanaque, Washington (Bergen), Westwood, Woodcliff Lake  .