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NJBIA Analysis Shows New Jersey Dead Last in Regional Business Climate Competitiveness

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file photo by Boyd Loving

May 3,2018

the staff of the Ridgewood blog

Trenton NJ, With New Jersey’s legislature weighing new tax hikes during budget season, the New Jersey Business & Industry Association released an analysis today that finds the Garden State already ranked last in the region for business climate competitiveness.

“This analysis should serve as an opportunity to reclaim our competitiveness and to improve the state’s economy through comprehensive planning, not excessive taxation,” said NJBIA President and CEO Michele Siekerka. “There is no better time than now to recognize the growing challenges of doing business in New Jersey and our competitive disadvantage with neighboring states.”

NJBIA tracked six individual business costs—minimum wage rate, top income tax rate, top corporate tax rate, sales tax rate, property taxes as a percentage of home value, and the top unemployment tax rate – and compared New Jersey’s rates with those of Connecticut, Delaware, Maryland, Massachusetts, New York and Pennsylvania.

Applying a scoring system to the most and least competitive regional rates, New Jersey finished last of the seven states by a considerable margin.

New Jersey currently ranks last out of all states in the region in top income tax rate (8.97 percent), sales tax rate (6.625 percent) and property tax paid as a percentage of home value (2.16 percent). New Jersey is also sixth out of seven states in top corporate tax rate (9 percent). The Garden State has the third lowest minimum wage rate in the region at $8.60 per hour and, more positively, has the lowest top unemployment tax rate in the region of 5.8 percent.

However, it’s foreseeable that New Jersey’s overall regional business climate could further decline with discussions of a minimum wage increase to $15 per hour, proposals to raise the top income tax rate for those making more than $1 million, and consideration of a Corporate Business Tax increase. These are in addition to the added costs brought on by the mandatory paid sick leave bill signed into law and the proposed sales tax increase to 7 percent.

“It’s important to recognize that New Jersey businesses are already paying their fair share when it comes to tax rates and the additional cumulative costs that are being discussed and proposed could result in stagnation of our businesses, reduced staffing and hours or automation, according to our members,” Siekerka said. “We need tax and regulatory reform to address structural deficits in our economy, such as public pension and health benefits costs, and school funding. We cannot tax our way out of these challenges.”

Using data compiled by NJBIA policy analyst Nicole Sandelier, NJBIA scored the regional rates from 1 (most competitive in the region) to 7 (least competitive). New Jersey’s cumulative regional business climate score was 31 after totaling the six rates. Delaware has the best regional score at 17, followed closely by Maryland at 20. Pennsylvania (23) and New York (24), New Jersey’s largest outmigration states, finished third and fourth, respectively.

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New Jersey on the Verge of Becoming Greece

titanic

March  20,2018

by Daniel J. Mitchell  (https://fee.org/articles/new-jerseys-fiscal-train-wreck/?utm_source=zapier&utm)

Trenton NJ, this is from an article called , New Jersey’s Fiscal Train Wreck, Just ask Greece how well continually raising taxes and spending works.

by Daniel J. Mitchell, Daniel J. Mitchell is a Washington-based economist who specializes in fiscal policy, particularly tax reform, international tax competition, and the economic burden of government spending. He also serves on the editorial board of the Cayman Financial Review.

He starts with , here’s something especially amazing from a bit more than five decades in the past. New Jersey used to have no state income tax and no state sales tax.

Yes, your eyes are not deceiving you. The basket case of New Jersey used to be a mid-Atlantic version of New Hampshire. But once the sales tax was imposed in 1966 and the income tax was imposed in 1976, it’s been all downhill ever since.

An article in the City Journal helps explain the state’s fiscal decay.

Brendan Byrne, a Democratic former governor of the Garden State, …told mayors that the state would need a “large revenue package”… The heart of the package would be a new statewide income tax, which went into permanent effect in 1977. Byrne promised that the additional money would help relieve the high property-tax burden on New Jersey’s citizens… Four decades later, the plan has failed. …politicians and special interests don’t see new streams of tax revenue as a means to replace or eliminate an existing stream, but rather as a way of adding to the public coffers. (For those who entertain fantasies of a value-added tax replacing the federal income tax, take heed.) New Jersey’s income tax started with a top rate of about 2.5 percent; it’s now around 9 percent.

Needless to say, nothing politicians promised has happened.

Property taxes haven’t been reduced. They’ve gone up. The government schools haven’t improved. Instead, the test scores in the state are embarrassing. And debt hasn’t gone down. Red ink instead has skyrocketed.

And what’s amazing—and depressing—is that New Jersey politicians continue to make a bad situation worse. Here are some excerpts from a Bloomberg report.

New Jersey Governor Phil Murphy proposed taxing online-room booking, ride-sharing, marijuana, e-cigarettes and Internet transactions along with raising taxes on millionaires and retail sales to fund a record $37.4 billion budget that would boost spending on schools, pensions and mass transit. …Murphy, a Democrat…has promised additional spending on underfunded schools and transportation in a credit-battered state with an estimated $8.7 billion structural deficit for the fiscal year that starts July 1. …Murphy said Tuesday in his budget address to lawmakers, “A millionaire’s tax is the right thing to do—and now is the time to do it.” …The budget…would…restore the state’s sales tax to 7 percent from 6.625 percent… Murphy’s proposal would almost triple the direct state subsidy for New Jersey Transit, which has been plagued by safety and financial issues.

More taxes, more spending, followed by even more taxes and more spending.

I wonder if Greek taxpayers would want to tell their counterparts in New Jersey how that story ends.

Assuming, of course, there are any taxpayers left in the Garden State. There’s already been a big exodus of productive people who are tired of being treated like fatted calves.

And don’t forget that New Jersey taxpayers no longer have unlimited ability to deduct their state and local taxes on their federal tax return. So these tax hikes will hurt much more than past increases.

In any event, taxpayers better escape before they die.

Though I know one guy who won’t be leaving.

P.S. Anybody want to guess whether New Jersey collapses before California, Illinois, or Connecticut? They’re all in the process of committing slow-motion suicide.

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People are fleeing New York at an alarming rate

ridgewood real-estate

By Aaron Short

April 1, 2017 | 11:00pm

More people are leaving the New York region than any other major metropolitan area in the country.

More than 1 million people moved out of the New York area to another part of the country since 2010, a rate of 4.4 percent — the highest negative net migration rate among the nation’s large population centers, US Census records show.

The number of people leaving the region — which includes parts of New Jersey, Connecticut, the lower Hudson Valley and Long Island — in one year swelled from 187,034 in 2015 to 223,423 in 2016, while the number of international immigrants settling in the tri-state area dwindled from 181,551 to 160,324 over the same period, records show.

The nation’s economy is improving, there are more jobs in cheaper places to live, and retirees are choosing to move to warmer climates, experts say.

http://nypost.com/2017/04/01/people-are-fleeing-new-york-at-an-alarming-rate/?utm_campaign=SocialFlow&utm_source=NYPFacebook&utm_medium=SocialFlow&sr_share=facebook

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Trump Sweeps 5 States in Massive Landslide !

NRA Holds Its Annual Meeting In Nashville

April 27,2016

the staff of the Ridgewood blog

Ridgewood NJ, Donald Trump moved another step closer to the Republican nomination , by sweeping 5 North East States in massive landslide victories .For the Cruz camp it was the end of the road , Ted Cruz is now mathematically eliminated . Trump won decisively in all 5 states getting a 50 plus % majority in every state and over 60% in Rhode Island and Delaware. After winning all five primaries tonight;  Connecticut, Rhode Island, Delaware, Maryland and Pennsylvania Donald Trump now has 949 delegates . The magic number is  1,237 delegates  and there are still 651 available.

http://www.foxnews.com/politics/elections/2016/presidential-primary-caucus-results

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New Jersey Makes the Top Ten: 2016’s States with the Highest Tax Burdens

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Trenton

New Jersey Places Number 7 in States with the Highest Tax Burdens

April 11,2016

the staff of the Ridgewood bog

Ridgewood Nj, With a week remaining until Tax Day and many Americans finding the current tax code too confusing to determine exactly how much their home states are actually taking from their income in taxes, the personal finance website WalletHub conducted an in-depth analysis of 2016’s States with the Highest & Lowest Tax Burdens.
In order to determine which states tax their residents most aggressively, WalletHub’s analysts compared the tax burdens of the 50 states by measuring property taxes, individual income taxes, and state and gross receipts taxes — the three components of state tax burden — as percentages of the total personal income in each state.

States with the Highest Tax Burdens (%) States with the Lowest Tax Burdens (%)
1 New York (13.12%) 41 Texas (7.67%)
2 Hawaii (11.86%) 42 Wyoming (7.62%)
T-3 Maine (11.13%) 43 Alabama (7.41%)
T-3 Vermont (11.13%) 44 Florida (7.22%)
5 Connecticut (10.91%) 45 Oklahoma (6.95%)
6 Minnesota (10.46%) 46 South Dakota (6.94%)
7 New Jersey (10.38%) 47 New Hampshire (6.88%)
8 Rhode Island (10.36%) 48 Tennessee (6.56%)
9 Wisconsin (10.32%) 49 Delaware (5.91%)
10 Illinois (10.19%) 50 Alaska (5.18%)

Comparing the States

  • Red states have a lower total tax burden, with an average rank of 32.00, compared with Blue states, which have an average rank of 19.38. (The lower the rank, the higher the burden)
  • New Jersey has the highest property tax as a fraction of personal income, 5.41 percent, which is four times higher than in Oklahoma, the state with the lowest, 1.42 percent.
  • New York and Oregon have the highest individual income taxes as a fraction of personal income, 4.76 percent and 4.04 percent respectively, whereas Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming do not levy such a tax.
  • Hawaii has the highest total sales and gross receipts tax as a fraction of personal income, 6.95 percent, which is six times higher than in Oregon, the state with the lowest, 1.15 percent.

For the full report and to see where your state ranks, please visit:
https://wallethub.com/edu/states-with-highest-lowest-tax-burden/20494/

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Kudlow Plans Senate Bid Decision by February

Larry Kudlow

By John Gizzi   |   Sunday, 03 Jan 2016 06:51 PM

As Connecticut Republicans increasingly hope he will say yes to a U.S. Senate race in 2016, conservative TV and radio host Larry Kudlow told Newsmax he will make a decision on whether to challenge Democrat Sen. Richard Blumenthal “before the end of February.”

In an exclusive interview with Newsmax, Redding resident Kudlow, 68, came the closest he has so far to becoming a full-fledged candidate.

Best known as a spirited champion of smaller government and slashing tax rates, the onetime Reagan administration deputy budget director told us that the issue that motivates him the most to run is the war on terror.

“The war against ISIS is the great issue of our time,” said Kudlow, widely known for his long-running “The Kudow Report” on CNBC and his nationally-syndicated radio show. “ISIS wants to destroy America and it is in cahoots with the groups that want to destroy Israel. But we must destroy ISIS.

“It burns in me we have a mediocre, left-leaning senator agreeing with Obama that ‘global warming is the issue of our time.’ And whatever skills I have, I will use them to run a scathing campaign on this issue.”

Read Latest Breaking News from Newsmax.com http://www.newsmax.com/John-Gizzi/kudlow-close-run-senate/2016/01/03/id/707968/#ixzz3wTxYIZ1bhttp://www.newsmax.com/John-Gizzi/kudlow-close-run-senate/2016/01/03/id/707968/#ixzz3wTxYIZ1b

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Report: These Five States Connecticut, Illinois, New Jersey, Massachusetts and Hawaii Have Highest Liability Per Taxpayer

Screen-Shot-2014-08-29-at-11.37.36-AM-266x300

Report: These Five States Connecticut, Illinois, New Jersey, Massachusetts and Hawaii Have Highest Liability Per Taxpayer

Josh Siegel / @JoshDailySignal / August 31, 2014

Taxpayers in Alaska who enjoy keeping their money will be happy to see a new report that claims the country’s 49th state is best able to fund its obligations.

Residents of Connecticut may not feel as good.

The Truth in Accounting report ranks the states by “taxpayer burden,” a measure that represents the amount each taxpayer would have to pay his or her state’s treasury to fill its financial hole.

Truth in Accounting, a Chicago-based nonprofit, determined that the states with the highest taxpayer burden — deemed “Sinkhole States” — are, in descending order, Connecticut, Illinois, New Jersey, Massachusetts and Hawaii.

The “Sinkhole States”

The states with the largest “taxpayer surplus” — called “Sunshine States” based on having assets available to pay their bills — are, from the top:  Alaska, North Dakota, Wyoming, Utah and South Dakota.

The “Sunshine States”

Taxpayer burden is calculated by determining each taxpayer’s share of state debt after setting aside capital-related debt and assets.  Remaining debt is primarily unpaid pension and retirement health promises.

In its fifth annual report, released this month, Truth in Accounting says states that have unfunded pension liabilities put a burden on future taxpayers, even though “they will not receive any services” from the retired employees who earn those pensions.

States with taxpayer surplus, on the other hand, fund pension costs during the year employees earn the benefits, and the money is set aside for that year.

Connecticut, which the report considers to be in the worst financial shape, has an overall budget shortfall of $61.4 billion, which breaks down to $48,100 per taxpayer.

Truth in Accounting reports that most of Connecticut’s retirement benefits have been promised but not funded.

A Connecticut law requires the legislature to pass a balanced budget. This likely explains why the state chose not to report its entire retirement benefit liability. The report says:

One of the reasons Connecticut is in this precarious financial position is state officials use antiquated budgeting and accounting rules to report Connecticut’s financial condition. Since employee retirement benefits are not immediately payable in cash, the related compensation costs have been ignored when calculating balanced budgets.

Alaska, reported to be in the best financial shape, has an overall budget surplus of $13.5 billion, which breaks down to $46,900 per taxpayer. The report says Alaska has enough money to pay state employees’ retirement benefits and other outstanding bills:

Alaska is in good financial shape because the legislators and governors have only promised citizens and employees what they can afford to deliver.

See how your fared state by reading the Truth in Accounting report.

The worst performing states

http://dailysignal.com/2014/08/31/report-five-states-highest-liability-per-taxpayer/?utm_source=heritagefoundation&utm_medium=email&utm_campaign=dailydigest&mkt_tok=3RkMMJWWfF9wsRonvanKZKXonjHpfsX56eUoX6C0lMI%2F0ER3fOvrPUfGjI4DTMVrI%2BSLDwEYGJlv6SgFQrLBMa1ozrgOWxU%3D