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Retail Disaster : New Jersey Ranked Even Worse than New York in Sales Tax

Phil Murphy

the staff of the Ridgewood blog

Ridgewood NJ, according to the Tax Foundation New Jersey scored near the bottom , ranked 45th as on of the lowest-scoring states having a high sales tax rate, high excise tax rates, or apply the sales tax to a variety of business inputs. The states with the lowest scores on this component are Louisiana, Washington, Alabama, Arizona, Tennessee, and New Jersey.

Continue reading Retail Disaster : New Jersey Ranked Even Worse than New York in Sales Tax

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After a $1.5 billion Tax Increase No Suprise NJ Ranked 50th in Tax Foundation’s 2019 State Business Tax Climate Index

Phil Murphy

the staff of the Ridgewood blog

Trenton NJ, Senate Republican Leader Tom Kean said that $1.5 billion in tax increases imposed by New Jersey Democrats this year have cemented the Garden State’s last-place ranking in the Tax Foundation’s newly released 2019 State Business Tax Climate Index.

Continue reading After a $1.5 billion Tax Increase No Suprise NJ Ranked 50th in Tax Foundation’s 2019 State Business Tax Climate Index

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New Jersey Ranked Dead Last for State Business Tax Climate

Phil Murphy

the staff of the Ridgewood blog

Ridgewood NJ, the Tax Foundation released it’s 2019 State Business Tax Climate Index which compares each state on over 100 variables including corporate, individual, property, and sales taxes to show how well states structure their tax systems and to provide a road map for improvement.

The modern market is characterized by mobile capital and labor, and evidence shows that states with the best tax systems will be the most competitive at attracting new business and generating economic and employment growth.

Once again New Jersey was ranked dead last of all 50 states.

Continue reading New Jersey Ranked Dead Last for State Business Tax Climate

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Tax Foundation Study Confirms that Bob Gordon’s Policies are Destroying New Jersey’s Economy

Kelly Langschultz,

Wednesday, October 18, 2017
Kelly Langschultz for NJ Senate LD38

NEW MILFORD, NJ – New Jersey once again is grabbing headlines as the worst state to do business in. The Tax Foundation, a non-partisan Washington-based think tank, released their 2018 State Business Tax Climate Index earlier this week, ranking New Jersey 50th overall in tax policy.

“While attempting to start a business and raise a family, all while being a constituent of Bob Gordon’s for the last fourteen years, I have personally experienced the unintended consequences of our Senator’s voting record that has led us here.” said Kelly Langschultz regarding the Tax Foundation’s findings.

“Voters in Bergen and Passaic have seen enough of Bob Gordon’s policies, which is why I’m campaigning aggressively to replace Gordon in three weeks and put our state back on the right track.”

The Tax Foundation rated New Jersey dead last in overall business climate, 42nd in Corporate Tax competitiveness, 48th in Individual Taxes, 46th in Sales Taxes and ranked New Jersey’s Property Taxes the highest in the nation.

“Whenever any legislation is on the Senate floor and Bob Gordon gets the opportunity to stand up for his constituents, the Senator fails every time. Every effort to seriously reform our state’s tax code and put New Jersey on the path to affordability and economic sustainability, Bob Gordon balks at every attempt to save those struggling in the 38th District. The sad truth, Bob Gordon has yet to meet a tax increase he didn’t like.”

While serving as councilwoman in New Milford, Kelly Langschultz presented a fiscal stability plan earlier this year that will continue to contribute towards the borough’s taxes remaining flat and will give New Milford a path towards responsibly paying down its debt while protecting taxpayers.

“The stability plan and financial know-how I’ve been providing to New Milford residents is exactly what Trenton needs, and I plan on providing the same kind of relief to the residents of New Jersey when I’m sworn in this January.”

Kelly Langschultz is a mother of four, small business owner, councilwoman in New Milford and a candidate for State Senate in New Jersey’s 38th Legislative District. Learn more about Kelly on her website, KellyLangschultz.com or on Facebook at facebook.com/kelly4njsenate.

District 38 – (Bergen and Passaic)  Bergenfield, Fair Lawn, Glen Rock, Hasbrouck Heights, Hawthorne, Lodi, Maywood, New Milford, Oradell, Paramus, River Edge, Rochelle Park, Saddle Brook

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Federal Tax Freedom Day 2017 is April 23rd, New Jersey May 13th

Ridgewood_-4th_of-_July_theridgewoodblog

file photo by ArtChick
April 18, 2017
Scott Greenberg

Download Tax Freedom Day 2017 (PDF) https://files.taxfoundation.org/20170418101758/Tax-Foundation-TFD-2017.pdf

Ridgewood NJ,Tax Freedom Day in New Jersey does not arrive until May 13 ,thats 133 days into the year. The only state with a later Tax Freedom Day is Connecticut.

Tax Freedom Day is a term coined by the Tax Foundation it represents the date on which residents have earned enough to pay all federal, state and local taxes for the year. The early birds are Mississippi, that day arrived on April 5. It was April 7 in Tennessee and April 8 in South Dakota.

New Jersey residents will pay 36 percent of their incomes to federal, state and local taxes in 2017, according to the tax policy nonprofit. On a national level, 31 percent of income goes out the door for tax purposes.

Key Findings

This year, Tax Freedom Day falls on April 23rd, 113 days into the year.
Tax Freedom Day is a significant date for taxpayers and lawmakers because it represents how long Americans as a whole have to work in order to pay the nation’s tax burden.
Americans will pay $3.5 trillion in federal taxes and $1.6 trillion in state and local taxes, for a total bill of more than $5.1 trillion, or 31 percent of the nation’s income.
Americans will collectively spend more on taxes in 2017 than they will on food, clothing, and housing combined.
If you include annual federal borrowing, which represents future taxes owed, Tax Freedom Day would occur 14 days later, on May 7.

What Is Tax Freedom Day?

Tax Freedom Day® is the day when the nation as a whole has earned enough money to pay its total tax bill for the year. Tax Freedom Day takes all federal, state, and local taxes—individual as well as payroll, sales and excise, corporate and property taxes—and divides them by the nation’s income. In 2017, Americans will pay $3.5 trillion in federal taxes and $1.6 trillion in state and local taxes, for a total tax bill of $5.1 trillion, or 31 percent of national income. This year, Tax Freedom Day falls on April 23, 113 days into the year.

What Taxes Do We Pay?

This year, Americans will work the longest—46 days—to pay federal, state, and local individual income taxes. Payroll taxes will take 26 days to pay, followed by sales and excise taxes (15 days), corporate income taxes (10 days), and property taxes (10 days). The remaining six days are spent paying estate and inheritance taxes, customs duties, and other taxes.

When Is Tax Freedom Day if You Include Federal Borrowing?

Since 2002, federal expenses have surpassed federal revenues, with the budget deficit exceeding $1 trillion annually from 2009 to 2012. In calendar year 2017, the deficit is expected to shrink slightly, from $657 billion to $612 billion. If we include this annual federal borrowing, which represents future taxes owed, Tax Freedom Day would occur on May 7, 14 days later. The latest ever deficit-inclusive Tax Freedom Day occurred during World War II, on May 25, 1945.

When Is My State’s Tax Freedom Day?

The total tax burden borne by residents across states varies considerably due to differing tax policies and the progressivity of the federal tax system. This means that states with higher incomes and higher taxes celebrate Tax Freedom Day later: Connecticut (May 21), New Jersey (May 13), and New York (May 11). Residents of Mississippi bear the lowest average tax burden in 2017, with their Tax Freedom Day having arrived on April 5. Also early were Tennessee (April 7) and South Dakota (April 8).

How Has Tax Freedom Day Changed over Time?

The latest ever Tax Freedom Day was May 1, 2000; in that year, Americans paid 33 percent of their total income in taxes. A century earlier, in 1900, Americans paid only 5.9 percent of their income in taxes, so that Tax Freedom Day came on January 22.

Methodology

In the denominator, we count every dollar that is officially part of net national income according to the Department of Commerce’s Bureau of Economic Analysis. In the numerator, we count every payment to the government that is officially considered a tax. Taxes at all levels of government—federal, state, and local—are included in the calculation. In calculating Tax Freedom Day for each state, we look at taxes borne by residents of that state, whether paid to the federal government, their own state or local governments, or governments of other states. Where possible, we allocate tax burdens to each taxpayer’s state of residence. Leap days are excluded, to allow comparison across years, and any fraction of a day is rounded up to the next calendar day.

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Tax Foundation : What to Know Before You Vote on Tuesday

Clinton vs

November 4,2016

the staff of the Ridgewood blog

Ridgewood NJ, In 4 days, millions of Americans will go to the polls to decided everything from local ballot questions to the next President of the United States.

This year has been a busy one for tax policy. Throughout this year’s election, every major presidential candidate put forth a comprehensive tax plan (in some cases more than one), and at the state and local level, a number of tax policy proposals have made it on to ballots, some of which would be momentous if passed.

All of this can be difficult to keep track of and even harder to understand. The Tax Foundation has worked hard over the past year to provide Ridgewood blog readers and the media with the most accurate, timely, and accessible information possible on the tax policies being proposed.

To that end, here are 3 resources that we hope you and other taxpayers will find useful before entering the voting booth next week:

  1. Our guide to the top state and local tax ballot initiatives to watch in 2016
  2. An at-a-glance comparison of of how the Clinton and Trump tax plans would affect the U.S. economy
  3. An interactive tax calculator that shows how the Clinton and Trump tax plans would impact your wallet
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Tax Foundation : In 2012, the top 50 percent of all taxpayers (68 million filers) paid 96.7 percent of all income taxes

Taxes-1

Tax Foundation : In 2012, the top 50 percent of all taxpayers (68 million filers) paid 96.7 percent of all income taxes

The Tax Foundation’s annual summary of the latest federal income tax data broken down by income percentile.

This summary is a nicely formatted version of the 2012 data that the IRS released just before the holidays and is available as a PDF and Excel spreadsheet. Each year, this is one of our most popular resources for reporters, lawmakers, tax lawyers, etc.

Here are some of the highlights:

In 2012, 136.1 million taxpayers reported earning $9.04 trillion in adjusted gross income and paid $1.1 trillion in income taxes.
All income groups increased their income and taxes paid over the previous year.
The top 1 percent of taxpayers earned their largest share of income since 2007 at 21.9 percent of total AGI and paid their largest share of the income tax burden since the same year at 38.1 percent of total income taxes.
In 2012, the top 50 percent of all taxpayers (68 million filers) paid 96.7 percent of all income taxes while the bottom 50 percent paid the remaining 3.3 percent.
The top 1 percent (1.3 million filers) paid a greater share of income taxes (38.1 percent) than the bottom 90 percent (122.4 million filers) combined (29.8 percent).
The top 1 percent of taxpayers paid a higher effective income tax rate than any other group at 22.8 percent, which is nearly 7 times higher than taxpayers in the bottom 50 percent (3.28 percent).

click :

summary of the latest federal income tax data

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Gov. Cuomo Awarded for Outstanding Achievement in State Tax Reform in 2014

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Gov. Cuomo Awarded for Outstanding Achievement in State Tax Reform in 2014

Washington, DC (Oct. 16, 2014)—Today, the nonpartisan Tax Foundation will award New York Governor Andrew Cuomo with the 2014 Outstanding Achievement in State Tax Reform award for championing a comprehensive corporate tax reform bill that will transform New York’s treatment of corporate taxes from one of the worst in the country to one of the best. The Tax Foundation will present Governor Cuomo with the award at a 12:00pm press conference this afternoon at the Museum of American Finance in New York City.

As the award’s name suggests, honorees are selected due to their extraordinary efforts to advance the cause of simpler, smarter tax policy in the previous year. New York’s reforms in 2014 reduced unnecessary complexity in the corporate tax base and lowered the corporate income tax rate to the lowest level since 1968 (read more on the reform bill). As these reforms phase in, New York’s ranking on the State Business Tax Climate Index will improve from 50th to 48th and its corporate tax system will improve from 25th place to 4th best in the nation.

“New York’s efforts mark a tremendous step towards reforming one of the least competitive tax codes in the nation,” said Joseph Henchman, Vice President of State Projects at the Tax Foundation. “New York’s economic successes occur because of strengths that overcome a challenging business tax environment, but with 2014’s reforms, one less obstacle will stand in the way of the economic growth in New York.”

“At a time when the gridlocked federal government is slow to enact substantive reforms, it’s encouraging to see states enacting crucial and well-crafted reforms,” added Henchman.

This year, six people will receive the award, the rest of whom will be announced next week.

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Tax Foundation: An Update on Marijuana Taxes

Marijuana

Tax Foundation: An Update on Marijuana Taxes

New report offers overview of Colorado and Washington’s experiences with taxing marijuana

Washington, DC (Aug 25, 2014)—The debate over marijuana legalization is not going away. DC, Alaska, and Oregon will vote on legalization measures in November and 13 other states will likely push for similar ballot initiatives and legislative efforts in the near future. As this progress unfolds, it is important to keep track of the new approaches and proposals to taxing marijuana. Currently, two states have legalized marijuana sales and have put new tax structures into place: Washington and Colorado. A new report from the nonpartisan Tax Foundation examines each state’s experience thus far.

Each state utilizes a different set of tools for collecting revenue from marijuana sales.

Colorado collects tax revenue from a 15 percent excise based tax on the average wholesale market rate; a 10 percent state tax on retail marijuana sales; a state sales tax of 2.9 percent; varied local sales taxes; and local marijuana taxes such as a 3.5 percent tax in Denver.

On the other hand, Washington State collects tax revenue from a 25 percent tax on producer sales to processors; a 25 percent tax on processor sales to retailers; a 25 percent tax on retailer sales to customers; a state Business & Occupation (B&O) gross receipts tax; a state sales tax of 6.5 percent; and varied local sales taxes. The total effective tax rate to be about 44 percent.

Despite the elaborate network of revenue sources, tax collections in Colorado have fallen short of projected revenue estimates because of incorrect projections about the switch from lower-taxed medical marijuana to higher-taxed retail marijuana by consumers. Collections in Washington, however, have fallen within the wide range of projected revenue estimates.

As the issue continues to expand, it is important that states with possible upcoming ballot initiatives take note of effective and ineffective methods of taxing marijuana, lest they succumb to the latter.

Full report: Taxing Marijuana: The Washington and Colorado Experience

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