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Are the Rich Leaving New Jersey?


Are the Rich Leaving New Jersey?


New Jersey’s income taxes, estate taxes and property taxes are driving the wealthiest residents out of the state, a new study suggests.


The RegentAtlantic Capital report stated New Jersey’s high-income residents are learning to live elsewhere once they realize the amount of money they can save on taxes.


“New Jersey competes with other states, and not the federal government,” said David Bugen, managing partner. “The tax structure in New Jersey encourages high-income residents to move to Pennsylvania and still work in New Jersey.”


The report noted a high-wage earner could save $1.8 billion over 25 years by living in Pennsylvania instead of the Garden State.


New Jersey’s estate tax was also criticized by the report. The exemption for the tax on the deceased is $675,000 in New Jersey. No such charge exists in other locations, such as Florida.


“New Jersey is the most expensive state in this country in which to die,” Bugen said.


Unlike the majority of other states, New Jersey still prohibits residents from deducting charitable gifts on their state income tax return. Bugen suggested the state “does not encourage philanthropy,” creating another reason for an exodus of those with lots of money to spend. (Flammia/NJ101.5)

Are the Rich Leaving New Jersey? [AUDIO]

6 thoughts on “Are the Rich Leaving New Jersey?

  1. The really wealthy business owners opt to live in Florida for 181 days a year.
    The ‘soak the rich’ cry of our union run state doesn’t work.
    Smart rich people vote with their feet… and move.

  2. We’re giving those that pay the bulk of our tax bill every incentive to leave – and villifying them on their way out the door.

  3. Let’s see: 94% of the growth in NJ’s 2014 state budget is to pay for pensions, healthcare benefits and debt service, not for education and other services. Despite the biggest ever pension pension payment in history at $2.25 billion, the state is still underfunding the plan, and has nothing reserved to pay for the “pay-as-you-go” (PAYGO) healthcare benefits for municipal retirees. Underfunded state liabilities for pensions & healthcare totalled $84bn as of 2012. NJ has a Moody’s grade of Aa3, and only IL and CA have lower ratings among U.S. states. On Dec 17th lats year Moody’s reduced NJ’s financial outlook to negative. S&P also gives NJ a negative outlook. NJ ranks dead last in terms of financial stability amongst US states. Meanwhile, the number of +$100K Club municipal retiree pensioners in NJ has ballooned by 75% since 2010 ( Who in their right mind wants to dump this mess on their kids ?

  4. For a real eyeopener, look at this report. Jersey is 50th in almost all financial measures

    It won’t get better anytime soon…

  5. Its a union state, run by big city democrats.
    Are you surprised by the results?
    Whats happening in Detroit is coming to a city near you… SOON

  6. The weather alone is nudging me along. The cost, time and general misery of commuting to NYC, the crowds, and the taxes are all weighing in.

    Some of these things I could change by getting a job in NJ. I would have to take a hit though.

    There really are only two towns in NJ I would want to raise my kid in, though. Ridgewood or Princeton. Nothing against Montclair or Millburn but fuck Essex county.

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