Murray Sabrin
Professor of Finance at Ramapo College
Regarding “State senate president plans to push tax bill,” (Nov. 9, page 1A). The people of New Jersey spoke loud and clear on election night. They want state government to spend more of their money. Not really their money, just upper income folks who make up a small percentage of the population. And they want Trenton to expand its already overbearing micromanagement of the economy.
Senate president Stephen Sweeney announced that he will put a “millionaire’s tax” on the front burner when the legislature convenes after Governor-elect Phil Murphy takes office in January.
Raising taxes on millionaires is another example of why government is like Willie Sutton, the notorious bank robber who was asked why he robbed banks, he replied, “That’s where the money is.” Phil Murphy and Democrats are legal versions of Willie Sutton.
Higher taxes on upper income taxpayers will cause any out of state high-income individual, business owner, or corporate executive to think twice about relocating to New Jersey. In other words, we will never how many upper income folks will not move to New Jersey because of the highest marginal taxes Murphy is so hot to increase. In addition, how many people and businesses will leave New Jersey because of higher income taxes? We will soon find out.
The proposed tax increases on millionaires will eventually hit middle-income families, because that is how big government proponents operate—tax the smallest number of families first, then go after where the big bucks are, the middle class.
As H.L. Mencken remarked decades ago, “Democracy is the theory that the common people know what they want, and deserve to get it good and hard. “
Withing 12 hours of their victory, Democrats public said their ‘first order of business’ is to raise taxes.
Per Democrats’ / Murphy’s proposal, marginal tax rate on incomes above $1MM will be 10.75%.
Below are the top two tax brackets in NY state and NJ state:
NY
$321,050+ 6.85%
$2,140,900+ 8.82%
NJ
$500,000+ 8.97%
$1,000,000+ 10.75%
For a family with income between $500k and $1MM, the NJ tax is 2.12% higher than the NY tax.
For a family with income between $1MM and $2MM, the NJ tax will not be 3.90% higher than the NY tax.
No doubt, people already settled in NJ with friends etc will not suddenly bolt for NY. But for a family currently living in NYC/Brooklyn/Hoboken (typical Ridgewood pipeline), Westchester suddenly became a MUCH better option than Bergen country. And this is before we even compared the miserable commute from NJ to direct MTA train service from Westchester.
With negative incentive to move to NJ, property values (especially in Bergen County) will track what is happening in Fairfield country in Connecticut right now.
Absurdly enough, a majority of Ridgewood residents have voted in favor of the destruction of their own town (in more ways than one).
Yup, ship be sinking. I know it will take me down too but I will really enjoy the complaints of the imbeciles in Ridgewood who felt so strongly about that creep Murphy.
Bruce @ 12:43, They will complain about how it is all Republicans’ fault, shift to some red state that is growing (like VA, CO, AZ atc a few years back) and devote themselves to turning it blue.
Ridgewood used to be a Republican stronghold. Things were so good that liberals from Brooklyn, Hoboken, NYC and the likes could not wait to escape their liberal paradise and set down their roots here.
Of course, once here they dedicated themselves to converting this place into the liberal paradise that they escaped from.
Such are the ways of the liberal locusts.
@3.45. Tragic for Ridgewood. They have to ruin it for everyone by imposing their sadomasochistic wishes. Typical communists.
The limousine lefties here fall for champagne crap like diversity, living wage, equality, and climate change, not realizing that these things are simply put as as emotional hooks. You got played, my naive friends and neighbors. You got played.
Yep taxes will be going up more rigid homes will be up for sale I will be moving out Real soon