>Senators Tom Kean (R-21), Steven Oroho (R-24) and Joe Kyrillos (R-13) are hopping mad over one of the less-publicized outrages in President Barack Obama’s health care reform proposal.
If the legislation successfully makes its way reconciliation, Washington would impose a new tax on investment income. The N.J. Republican senate leadership is concerned that that tax “would be borne disproportionately by New Jersey residents.” Their concern is justified. With so many New Jerseyans either working in the investment industry or owning diversified investments individually, a new tax on their income could further hinder economic recovery efforts in our cash-strapped state. If passed, New Jersey’s unemployment rate could be expected to climb well above the current 10.1% mark.
Some key facts and figures from the Senate GOP office:
To help fund his multi-trillion dollar healthcare proposal, the President’s new plan, released on February 22, calls for the addition of a 2.9% Medicare tax on certain income, including that derived from interest, dividends, annuities, royalties and rent. This new tax would apply to individuals earning more than $200,000 and $250,000 for married couples filing jointly.
Data from the Tax Foundation show that New Jersey receives back just 61 cents in federal spending for every tax dollar sent by state residents to the federal government, the lowest rate of return of any state. With a rank of 42 out of 50, New York doesn’t fare much better.
Following the release of the President’s plan, an analysis by the Manhattan Institute shows that the residents of New York and New Jersey would pay a whopping 25% of the total revenue generated by the new income tax. When Connecticut is factored in, the residents of the tri-state region would pay almost 1/3 of the total tax. New Jersey’s share is estimated to be up to 9% of the total.
I think Lautenberg, Menendez, and the rest of the Democrat congressional delegation should make their vote for ObamaCare’s final passage contingent on the removal of this tax. Their first duty should always be to fight for the prosperity of the Garden State’s overtaxed citizens. Our voters did NOT send them to Washington to blindly follow Nancy Pelosi over the cliff! Adler, Menendez, Holt, and other potentially vulnerable Dems should be extra careful before they act on this bill, Save Jerseyans.
After all… these clowns fail to get the taxpayers a fair return on their federal tax dollars year after year. Just 61 cents on the dollar! The least they can do is prevent that statistic from getting any worse and vote against this huge new tax levy!
Permalink: blog.savejersey.com/2010/03/01/study-new-york-metro-area-will-pay-25-of-new-obamacare-tax.aspx
