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Trenton Continues to Drive Residents From the State

titanic_theridgewoodblog

July 7,2018

the staff of the Ridgewood blog

Trenton NJ, around two years ago, New Jersey’s richest resident , hedge fund billionaire David Tepper decided to move himself and his business to Miami Beach. Tepper, who personally earned more than $6 billion from 2012-2015, was tired of paying New Jersey’s top income-tax rate of 8.97% for the 20 years he lived there, in addition to the country’s highest property taxes, the estate tax and inheritance tax. By moving to Florida, a state with ZERO income tax, Tepper stood to save hundreds of millions of dollars each year. Tepper’s departure left an enormous hole in the New Jersey budget .

Anyone with an ounce of common sense would have at least acknowledged the possibility that a guy like Tepper would consider moving to save a few hundred million dollars , anyone that is except ,”stuck on stupid ” Trenton .

Tepper is not the only one to leave , according to the New Jersey Business and Industry Association, the State of New Jersey lost a whopping 2 million residents between 2005 and 2014, earning a combined $18 billion in net adjusted gross income, i.e. income that would have been taxed by the state.

With those out flow numbers Its not just the masters of the universe that are tired of paying sky-high taxes. It’s also the regular wage earner and small business owners. A whopping 60% of these folks went to Florida, with a state income tax of zero.

So the message from New Jersey’s residents (well, now former residents) is loud and clear: taxes are too high!

Now, what do you think New Jersey is doing to solve this problem?

New Jersey residents elected a governor that promised to raise their taxes, so instead of making the state friendlier to productive people and businesses , New Jersey has embarked on a program of driving out tax payers and replacing them with tax takers .

New Jersey now taxes residents making more than $5 million will now pay 10.75%, up from 8.97%.The corporate rate on businesses with more than $1 million in net income was also increased from 9% to 11.5% (Proportionally, that’s a potentially 27% increase in the amount of tax a business might pay).

This will simply exacerbate the problem even more ,chasing more businesses and people out of the state .

5 thoughts on “Trenton Continues to Drive Residents From the State

  1. As part of the law, the so-called millionaire’s tax, applicable only to those earning at least $5 million/year, is reduced after two years and disappears after two more. It’s not forever.

  2. The “rich” are streaming out of California after the “tax the rich” bills passed.
    Why would it be any different in NJ?
    .
    “The rich” are not “the stupid”…
    They are “the rich” because they have legally used the laws in effect to their advantage.
    .
    What makes these politicians think that all of a sudden “the rich” will become “the stupid” and stop acting in their own best interests? What makes these politicians think that “the rich” will not modify their behavior to take advantage of any new tax laws or avoid them entirely by leaving the state?
    .

  3. Why can’t we get a politician to attack the cost side of these issues? Some simple ideas such as changing the pensions for new hires in the police, fire, teachers, and other public employees to a 401K model. How bout going after the health care of these same employees? Small changes to the contribution level, coverage etc will be a big help. Healthcare for life, who gets that in the private world? 20 year retirements, tenure, etc.

    Public cars, public based expense accounts, excessive vacation and sick time. Please get some reason.

    Basing a pension on the last few years salary, that is a very expensive gimmick.

    This is not hard, just takes a hard line and some common sense.

  4. The end has begun and will probably come much more quickly that anyone realizes. Murphy will ultimately have to choose between funding the state workers union pension fund or closing schools and hospitals. Hedge fund billionaires have already left. Watch as anyone that owns a nice home in a decent town start to leave. These are not billionaires or even millionaires. Just people who are tapped out. And who’s movin in? Anyone in search of a government handout. Any Ridgewood resident that voted for Murphy is an idiot.

  5. “Any Ridgewood resident that voted for Murphy is an idiot.”
    .
    This bears repeating…
    .

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