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Governor Murphy’s lawsuit against the Internal Revenue Service is a waste of state resources and taxpayer money

the staff of the Ridgewood blog

Trenton NJ, Senator Joe Pennacchio criticized Governor Murphy’s lawsuit against the Internal Revenue Service, claiming it is a waste of state resources and taxpayer money.

“The Murphy Administration is lawsuit happy,” said Pennacchio (R-26). “The Governor should not be using New Jersey taxpayer dollars to play politics. Rather than fighting with the federal government, I urge Governor Murphy to focus on genuine and immediate tax solutions that we have the power as state lawmakers to advance.”

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Governor’s IRS Lawsuit Does Not Solve State’s High Tax Problem

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the staff of the Ridgewood blog

Trenton NJ, Senator Steven Oroho said that a lawsuit announced today by Governor Phil Murphy and Attorney General Gurbir Grewal against the Internal Revenue Service amounts to window dressing and won’t provide meaningful, long-term property tax relief to New Jersey families.

“New Jersey homeowners are the most overtaxed residents in the United States,” Oroho said. “The lawsuit announced today does very little to address that. The better approach would be to fix the state’s underlying tax problems that make the SALT limitation an issue. Governor Murphy can help make the Garden State more competitive and accomplish real savings for taxpayers by getting behind the Path to Progress reforms that have bipartisan support in the Legislature.”

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Senator Joe Pennacchio (R-26) : We told you that the IRS Wouldn’t Fall for Your SALT Workaround Scheme

the staff of the Ridgewood blog

Trenton NJ, In response to the news that the IRS has denied attempts by New Jersey and New York to circumvent the federal cap on SALT deductions, Senator Joe Pennacchio chastised Democrats for wasting taxpayer time and resources on a workaround that never had any chance of succeeding.

On Tuesday, the IRS issued final regulations prohibiting governments from doling out tax credits in exchange for charitable contributions – effectively negating the legislation advanced in the spring of 2018, despite the objections of legislators such as Senator Pennacchio, who warned that the IRS would take action.

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Assemblywomen sets the governor straight on property taxes, SALT deductions and irresponsible spending

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the staff of the Ridgewood blog

River Vale NJ, Assemblywomen Holly Schepisi sets the governor straight on property taxes, SALT deductions and irresponsible spending in the state of New Jersey .

Schepisi said on Facebook ,” I have a novel idea, why don’t we retain some of the top tax advisors, tax attorneys and CPAs in the country to rewrite NJ’s tax code to lessen our property tax burden while figuring out a better way to fund our schools and take advantage of the new federal tax code? We spend millions fighting Trump’s policies, why don’t we invest those monies into making our own tax situation a little more tolerable. Cut spending where we can, revise our property taxes and actually help our middle class.”

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With new SALT limit, IRS explains tax treatment of state and local tax refunds

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the staff of the Ridgewood blog from the IRS website

WASHINGTON DC, The Internal Revenue Service today clarified the tax treatment of state and local tax refunds arising from any year in which the new limit on the state and local tax (SALT) deduction is in effect.

In Revenue Ruling 2019-11 (PDF), posted today on IRS.gov, the IRS provided four examples illustrating how the long-standing tax benefit rule interacts with the new SALT limit to determine the portion of any state or local tax refund that must be included on the taxpayer’s federal income tax return. Today’s announcement does not affect state tax refunds received in 2018 for tax returns currently being filed.

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Readers Point Out the Obvious About Ridgewood and New Jersey Taxes

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file photo by Boyd Loving

“With the declining tax base, who is going to pay for all of these excessive salaries and benefits (platinum health care, very generous pension & unused sick leave payouts) negotiated in bad faith by the public sector unions ?”

“States with lower state & local taxes make much more sense for businesses to invest given the SALT deduction limits of $10,000 on their employees hurt them in high tax states like NJ.”

“The average residential property tax in Ridgewood is actually now $18,000 as of 2018/19 tax year… just as state & local tax deductions are limited to $10,000. What are the BOE and Village Council doing to help Ridgewood families keep food on their tables and gas in their cars given higher commuter pass costs, tolls, higher parking permit fees, higher Graydon and tennis pass fees, etc? And where are the vaunted schools & Village services those taxes are paying for ? In the tank.”

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Reader says municipal tax revenue levels are unsustainable

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file photo by Boyd Loving

Given SALT deductions are now limited to $10,000 for property taxes, shouldn’t the Council and BOE be aware that the vast majority of Ridgewood residents have seen an effective tax INCREASE and be looking for ways to reduce the burden? Realized sales values suggest home values will need to decline in the next assessment, so unless they jack up the mill rate, municipal tax revenue levels are unsustainable?

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NJGOP Chairman Calls On Murphy To End Frivolous Lawsuits Against Trump Admin and Focus on New Jersey

the staff of the Ridgewood blog

Trenton NJ,  Yesterday after the Trump administration moved to block state efforts to work around a new limit on state and local tax deductions, Governor Murphy has said he is weighing legal actions.. New Jersey’s top Republican NJGOP Chairman Doug Steinhardt released the following statement:

Continue reading NJGOP Chairman Calls On Murphy To End Frivolous Lawsuits Against Trump Admin and Focus on New Jersey

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Internal Revenue Service Says New Jersey’s SALT “Charitable Tax Dodge ” a No Go

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the staff of the Ridgewood blog

River Vale NJ,Assemblywomen Holly Schepisi , “Several months ago I raised concerns that the IRS would disallow NJ’s proposed charitable contribution of property taxes workaround. I implored my fellow legislators to stop pushing gimmicks and instead focus on much needed reforms to how we fund schools, reforms to our pension and health benefit programs, reestablishing caps on property taxes and working to change how we fund things in this State while reducing our expenses. ”

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Pascrell Fails to Accept Responsibility for New Jersey’s Failed Fiscal Policies

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“Pascrell Lambasts Latest Republican Tax Outrage”

July 25,2018

the staff of the Ridgewood blog

WASHINGTON D.C. ,  Today, Representative Bill Pascrell, Jr. (D-NJ-09), the Ranking Member of the Ways and Means Subcommittee on Trade, hammered the release of the so-called second phase of the Republican tax plan which announced that the egregious cap placed on federal deductions for State and Local Tax Deductions (SALT) would be made permanent.

“As New Jersey’s Yogi Berra liked to say, it’s déjà vu all over again. Another day, another attempt by congressional Republicans to stick it to Garden State. Already burdened with the highest property taxes in America, for years people in my state relied on the state and local tax deduction to provide their families with flexibility to pay their bills. Republicans took care of that, capping those deductions to help pay for a trillion-dollar tax cut for big corporations and big tycoons. Now Republicans are announcing the SALT cap is going to be made permanent to bedevil New Jerseyans for all time. We already know Republicans go out of their way to bring pain on the people of the Northeast. They said so themselves. But they keep trying to prove it again to us. We’ve had it with this garbage. The GOP tax scam should be overturned and the full state and local tax deduction reinstated. Let the top 1% pay their fair share and leave New Jersey the hell alone.”

Pascrell, made no mentions of the 50 or so years of unabated irresponsible fiscal policies of the state New Jersey or the “Garden State ” as he like to say. Pascrell like many New Jersey politicians likes to blame the abject failure of state policies on the federal government .

Pascrell has represented his district since January 1997 and in that time there has been massive flight of people and businesses out of the “Garden State” for far greener pastures .  New Jersey ranks at the top only in taxes and ranks near the bottom is business climate and quality of life . Perhaps he and his fellow  New Jersey representatives could spend far more time on the problems in the state of New Jersey and less time grand standing and name calling .