The Ridgewood Blog Brings a Free Market Laissez-faire Point of View to Local, New Jersey State and National Issues.
By Mark Razzoli, Old Bridge Councilman
As the adage goes, if something can go wrong, it will; and in the worst possible way and at the worst possible time. It will cause the most damage at the most expense.
If this isn’t a cause for New Jerseyans to stop and say “WTF?” nothing is; especially with the real Murphy and his made-up laws in place. Murphy and his law have no plan for economic recovery, besides begging the federal government for a bail out. If there is a plan, he hasn’t shared it.
June 26,2018
the staff of the Ridgewood blog
Rivervale NJ, Assemblywomen Holly Schepisi had this report on the states budget negotiations, ” Fascinating conference call. I joined in the Democratic State Committee conference call with Governor Murphy 1-609-246-3298 to talk about the budget. There is a proposed spending increase of several billion dollars, tax increases on everything from Uber rides, Air BnB, gas tax increases, corporate business taxes, hospital taxes, sales tax, vape tax, internet sales tax, sports betting taxes, firearm taxes, among others but that isn’t enough. The Governor’s spending proposal is so high that even with all these tax increases there is a potential $1 BILLION deficit, with only partial school funding, partial pension payments and no reforms whatsoever. Instead there is the push to further increase the sales tax, the small business tax, the corporate business tax and a millionaire’s tax.
During this call Governor Murphy’s talking points are as follows:
1. Fiscal year ends Saturday and the Democrats are meeting but NJ needs sustainable long term revenues in place — aka permanent additional tax increases beyond those mentioned above.
2. NJ needs to stop kicking the can down the road — NJ must must move beyond that. We need to break the back of that culture.
We need to ensure “hand outs” are available. They deserve it.
I agree with the Governor that NJ needs to stop kicking the can down the road. We must make cuts. We need to reform our pension system. We must change our school funding formula. We must change our healthcare system.
3. Property Taxes – the Governor said property taxes are so high because of our public educational system and that additional taxes would help with this burden.
Unfortunately this statement is just not true. Even if our current funding formula was fully funded the average suburban community still receives virtually no funding. By way of example, River Vale currently receives $455 per student per year in school funding. In the event the school funding formula was fully funded River Vale would receive a maximum of less than $1,000 per student per year in school funding. All 70 of the Bergen County school districts combined would still receive less than Jersey City. Bergen County currently contributes more than 30 percent of the total taxes paid and receives less than 3 percent of those monies back. Under the new tax proposals we may send down more than 35-40 percent and receive back even less.
Don’t believe the hype. We need to stop being a piggy bank.
June 20,2018
the staff of the Ridgewood blog
Trenton NJ, Assembly Republicans on the budget committee unanimously rejected a competing legislative tax plan today that raises taxes by $1.2 billion dollars. Legislative Democrats swapped Gov. Phil Murphy’s proposed millionaires tax and sales tax increase for a corporate tax hike and other tax increases.
“Legislative Democrats keep warning about how Murphy’s millionaires tax will drive high-earners and their businesses out but their plan taxes businesses at a much higher rate,” said Assemblyman John DiMaio (R-Warren), the Republican budget officer.
Under their plan, the top rate on corporations would jump from 9 percent to 13 percent. Murphy proposed raising the top income tax rate from 8.97 percent to 10.75 percent on income over $1 million.
“That is much more likely to make businesses move out, not the other way around,” concluded DiMaio. “Their own argument refutes their plan.”
The new rate would apply on corporations earning more than $25 million and would become the highest business tax in the nation. Businesses earning between $1 million and $25 million would also pay a slightly lower rate of 11.5 percent. That would only be exceeded by Iowa at 12 percent, which is in the process of lowering its top rate to 9.8 percent.
New Jersey currently has the sixth-highest corporate tax rate in the country, and has been rated the worst business tax climate for the past four years according to the Tax Foundation.
“Increasing corporate business taxes for even two years to what is already one of the highest rates in the nation will slow already lagging job growth,” added Nancy Munoz (R-Union), a member of the budget committee.
New Jersey has lost nearly 15,000 jobs since January, according to the Bureau of Labor Statistics, while the labor force has decreased by 30,000 people.
“Democrats claim they want to help those who are struggling but they make it harder by increasing the cost of doing business,” continued Munoz. “When jobs are being lost, the poor get poorer and the middle-class shrinks.”
May 31,2018
the staff of the Ridgewood blog
Ridgewood NJ, in a new survey, certified public accountants (CPA’s) in New Jersey believe the spending plan put forth by Gov. Phil Murphy would be bad for the Garden State.
Nearly 75 percent of the 786 NJCPA members responded to the survey conducted earlier this month said New Jersey’s economy would either get “significantly worse” (31 percent) or “marginally worse” (44 percent) over the long term under Governor Murphy’s proposed budget plan.
Ralph Albert Thomas, the CEO and executive director at the NJ Society of CPAs, says when members were asked about Murphy’s budget proposal “and the impact it would have on the economy going forward, an overwhelming 74 percent said that it would get worse, and 31 percent said it would get significantly worse.”
Meanwhile just 14 percent of respondents said Murphy’s proposed spending plan would help the Jersey economy.
May 22,2018
the staff of the Ridgewood blog
Ridgewood NJ, , In a new report, Moody’s Investors Service described New Jersey’s April income tax collections, which were down 1 percent from last year, as an outlier and “weaker than expected.” NJ Treasurer Elizabeth Muoio told the Assembly Budget Committee on Monday. “A reality check on the urgent need for new revenues.”
Both Democrat and Republican leadership in both houses of the state Legislature say they’re opposed to those tax hikes, and they’re now firmly in the position of having to come up with $1.5 billion in cash or slashing as much to keep the budget in balance.
The ugly reality is that increases taxes ill continue to erode the already shrunken tax base in New Jersey .
While the Murphy Administration has promised a wild spending spree with no visible budget cuts anywhere else and the pace of taxpayer exodus from New Jersey has quickened ,Holly Schepisi , New Jersey State Assemblywoman for District 39 , “While wanting to create programs such as free community college, expansion of financial programs and aid, raising salaries and providing retroactive pay increases may be laudable progressive goals of Governor Murphy, New Jersey is in a real financial crisis necessitating a combination of budget cuts, large scale reforms to our pension and health system and a restructuring of our entire tax code and school funding mechanisms. Our legislature must work in a bipartisan manner and have the intestinal fortitude to do what is needed in order for our State to become fiscally healthy. Then, and only then, should conversations regarding the Governor’s proposed increases in spending take place.”
May 9,2018
the staff of the Ridgewood blog
Trenton NJ, while you been buy on the local election campaign Governor Murphy just handed out a nice payback to the unions that got him elected .Governor Phil Murphy said at the time he doesn’t know the cost to taxpayers of raises he gave to 35,000 New Jersey state workers, members of a union that supported his candidacy.
Assemblywomen Holly Schepisi said , “Maybe these raises are warranted, maybe they aren’t, but how could our Governor authorize them without having some idea of what they would cost the taxpayers of New Jersey???
P.S. it’s over $148 million ”
UPDATE: Below please find today’s press release from the Governor’s office which discusses preliminary increased costs of $149 million.
State of New Jersey
Murphy Administration Releases Total State Cost of Contract Settlement with the Communication Workers of America, AFL-CIO
Trenton – Today, the Murphy Administration released the total projected state cost of its recent contract settlement with the Communication Workers of America, AFL-CIO:
The total projected state cost of the contract is approximately $148.9 million.
Of this total, $78 million is related to the unprecedented suspension of step increments and clothing allowances by the Christie Administration dating back to FY 2016.
A fiscal year breakdown of the projected costs may be found below. Retroactive payouts for FY 2016 and FY 2017 are assumed in the Fiscal Year 2018 adjusted appropriation:
FY Payout Total
FY16 Retro $24.0 million
FY17 Retro $34.7 million
FY18 Retro $41.4 million
FY 19 Projected $48.8 million
Grand Total $148.9 million
Because of the duration of the retroactivity and the details of the contract negotiations, final totals will not be available until programming is completed.
file photo by Boyd Loving
Apr 17, 2018
by AFP
Trenton NJ, Americans for Prosperity-New Jersey (AFP-NJ) on Tuesday responded to a report released by the American Legislative Exchange Council (ALEC) that ranks New Jersey as having the fifth-worst economic outlook in the country. The 11th Edition of Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index ranks every states’ economic outlook based on fifteen policy variables like tax rates and labor policies; New Jersey is ranked 46.
“This report reaffirms what we’re reminded of every Tax Day – New Jersey residents are taxed too much and have nothing to show for it except an economy in dire straits with one of the highest out-migrations in the country,” said AFP-NJ State Director Erica Jedynak, who also serves as ALEC’s Private Sector Chair for the Garden State. “The economic situation will only worsen as more beleaguered New Jersey families scramble for the exit. If state and local leaders hope to reverse these trends we must begin to implement policies that provide tax relief and expand worker freedoms.”
“As states compete with each other for much-needed human and financial capital, there is generally a clear trend in favor of taxpayer-friendly, market-oriented reforms across the United States,” said Jonathan Williams, Chief Economist and Vice President for the Center for State Fiscal Reform at ALEC. “Unfortunately for the hardworking taxpayers of New Jersey, the Garden State is once again heading in the wrong direction with the discussion of tax increases. The new rankings show New Jersey is stuck in the bottom five in economic outlook because of high taxes, overwhelming government regulation and cronyism.”
“New Jersey’s poor ranking was well earned and is much deserved. It continues to tax and spend itself into obscurity,” said Senator Joe Pennacchio, who also serves as ALEC’s Public Sector Chair for New Jersey. “Governor Murphy’s first budget raises taxes 2 billion dollars and increased spending by 8 percent. People are fleeing our State leaving behind their families and communities. Whoever is left must shoulder an even higher tax burden. Not fair.”
April 18,2018
the staff of the Ridgewood blog
Arlington VA , The American Legislative Exchange Council (ALEC) today released the much anticipated 2018 edition of Rich States, Poor States. Utah again earns the top spot for states with the best economic outlook, followed by Idaho, Indiana, North Dakota and Arizona. Several states’ success in increased rankings can be tied directly to the success of federal tax reform and the resources it gave to lawmakers to cut taxes at the state level.
The 11th edition of Rich States, Poor States is characterized by great movement in state economic performance and outlook as a result of federal tax reform and the resulting actions of certain states.
Biggest movement in rankings:
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Biggest Gainers
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Spots Gained
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Biggest Losers
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Spots Fell
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Idaho
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8
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Tennessee
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7
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Georgia
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6
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South Carolina
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6
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Connecticut
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6
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Pennsylvania
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5
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Nebraska
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4
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Texas
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5
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Arizona
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3
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Illinois
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6
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The 15 economic policy variables used by the authors—top economist Jonathan Williams, White House Advisors Art Laffer and Stephen Moore—to rank the economic outlook of states have shown over time to be among the most influential variables for state growth. The top ten and bottom ten states for 2018 are:
Overall Economic Outlook for 2018
|
Top Ten
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Bottom Ten
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1. Utah
2. Idaho 3. Indiana 4. North Dakota 5. Arizona 6. Florida 7. North Carolina 8. Wyoming 9. South Dakota 10. Virginia |
41. Oregon
42. Maine 43. Montana 44. Minnesota 45. Hawaii 46. New Jersey 47. California 48. Illinois 49. Vermont 50. New York |
“The untold story of federal tax reform is its impact at the state level, where the vast majority of states are now enjoying unexpected revenue gains,” said Jonathan Williams, Chief Economist and Vice President of the ALEC Center for State Fiscal Reform. “This trend is empowering additional pro-growth tax reform efforts that will provide an added level of benefits for hard-working taxpayers. As states compete with each other for much-needed human and financial capital, there is a clear trend in favor of taxpayer-friendly, market-oriented reforms.”
“The shakeup in rankings is exciting and a testament to how states are always competing to offer the most pro-growth tax climate. When states compete on the merits of good public policy, ultimately the taxpayer ends up being the real winner,” said North Carolina State Rep. and National Chairman Jason Saine.
In the past five years alone, 30 states have significantly reduced their tax burdens. Those that fail to adapt to this competitive environment can fall behind by simply standing still. The facts remain clear that pro-growth policies are working and there is a clear trend in favor of market-oriented reforms.
Rich States, Poor States examines the latest trends in state economic growth. The data ranks the 2018 economic outlook of states using 15 equally weighted policy variables, including various tax rates, regulatory burdens and labor policies. The 11th edition examines trends over the last few decades that have helped or hurt states’ economies.
Used by state lawmakers across America since 2008, Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index, is authored by White House Advisor and economist Dr. Arthur B. Laffer, White House Advisor and Economist Stephen Moore, and Jonathan Williams, Vice President of the American Legislative Exchange Council Center for State Fiscal Reform.
To download a copy of Rich States, Poor States and to see individual state data, visitrichstatespoorstates.org
New Jersey is currently ranked 49th in the United States for its economic performance. This rank is a backward-looking measure based on the state’s performance (equal-weighted average) in three important performance variables shown below. These variables are highly influenced by state policy.
| METRIC | VALUE | RANK |
|---|---|---|
| Cumulative GDP Growth, 2006 – 2016 | 23.7% | 41st |
| Cumulative Domestic Migration, 2007 – 2016 | -516,326 | 46th |
| Non-Farm Employment Growth, 2006 – 2016 | 0.54% | 42nd |
April 17,2018
the staff of the Ridgewood blog
Florham Park NJ, in what looks like the first of many, baby food giant Gerber food said Monday that it will be closing its headquarters in Florham Park and moving to Arlington, Virginia, beginning the transition in January 2019.
Gerber will move operations to the same building as its sister company Nestle USA, which also recently relocated to the Washington D.C. area, the company said in a statement.
This leaves close to 180 New Jerseyans will be out of a job mostly in corporate positions such as marketing, finance and HR. The company will offer a chance to relocate, as well as severance and outpatient support for those that can’t make the move.
A congratulations to Governor Murphy , who’s policies seem destine to produce the final mass exodus of companies and labor from the state of New Jersey.
April 11,2018
the staff of the Ridgewood blog
Ridgewood NJ, , no this is not from the Onion ,and it a little late for April fools, New Jersey Governor Phil Murphy’s administration on Tuesday made the case to skeptical legislators that nearly $1.6 billion in new taxes is necessary to take the state’s economy off “life support” . Is this a joke the reason the state’s economy is on “life support” because of high taxes , have driven out private investment and massive fiscal mismanagement .
Poll after poll shows that most New Jerseyians feel high taxes are the biggest issue and the primary reason for leaving the state ,yet Phil Murphy running on a platform of raising everyone’s taxes won election .
Republican Sen. Declan O’Scanlon warned against taxing millionaires for fear they might move to states with friendlier tax climates.“You can squeeze the golden goose to get it to lay more golden eggs faster but at some point you either crush the goose or it gets pissed off enough and it flies to Florida, and either way you have no more golden eggs,” Bad news Senator its already happened , the “golden goose ” is long dead and the ship is sinking fast.
Governor Murphy Wants to Slash Homestead Benefit Program After Campaigning to Increase Rebates
March 31, 2018
the staff of the Ridgewood blog
Ridgewood NJ,Senator Michael Doherty said that Governor Phil Murphy’s budget proposal for 2019 is looking even worse as more details are revealed, including his plan to cut property tax rebates by more than 50 percent next year.
Sen. Mike Doherty slammed Gov. Phil Murphy’s proposal to cut property tax rebates by more than 50 percent next year. (SenateNJ.com)
“It’s sickening that Governor Murphy wants to reduce property tax rebates further despite promising during his campaign to restore cuts imposed by Democrats in the current budget,” said Doherty (R-23). “With the highest property tax bills in the nation, New Jerseyans need more property tax relief, not less as Governor Murphy has proposed.”
According to the Fiscal Year 2019 Budget in Brief provided by the Murphy Administration (see page 18), the governor has chosen to perpetuate a 50 percent cut to the Homestead Benefit Program in the current year’s budget that was to be fully restored in 2019.
This proposal directly contradicts his campaign pledge of “restoring rebates to low-income, seniors and disabled residents.”
“Not only has Governor Murphy chosen to prevent the restoration of funding to rebates, which would have doubled this important form of property tax relief in 2019, he has proposed cutting another $12.5 million from the Homestead Benefit Program,” Doherty said. “It’s a gut punch to property taxpayers.”
Doherty said the Governor has a constitutional obligation to increase property tax relief, given a projected budget surplus of $800 million to $1.5 billion that’s tied to larger than expected income tax collections.
“The New Jersey Constitution requires income tax revenues collected by the State to be dedicated to property tax relief,” added Doherty. “The Governor is trying to cut Homestead rebates when he should be increasing them. It looks like Governor Murphy has some explaining to do to property taxpayers.”
March 31,2018
the staff of the Ridgewood blog
Ridgewood NJ, On April 18, Uncle Sam will once again take his cut from everyone’s earnings this past year. And many taxpayers are already wondering what that haircut on their finances will look like. However, with such a complex tax code further convoluted by the way taxes are imposed on Americans based on their individual household characteristics, it’s hard to tell unless you wrote the tax policies yourself.
To determine which states’ residents bear the biggest tax burdens, WalletHub’s analysts compared the 50 states across the three tax types that make up state tax burden — property taxes, individual income taxes, and sales and excise taxes — as a percentage of total personal income in the state. Read on for our findings, commentary from a panel of tax experts and a full description of our methodology
One simple ratio known as the “tax burden” helps cut through the confusion. Not to be confused with tax rates, which vary widely based on an individual’s particular circumstances, tax burden measures the exact proportion of total personal income that residents pay toward state and local taxes. And it isn’t uniform across the U.S., either.
Surprisingly New Jersey did not take the top spot as most over taxed state , in came in 7th worst ,bumped from 6th by fast decaying Connecticut that managed to tax two of its largest tax payers out of the state GE and Aetna. Of course this is before Governor Murphy gets his way pushing through his massive tax increases.
According to WalletHub’s analysts
1 New York total tax 12.94% property taxes 4.55% individual 4.76% sales and excise 3.63%
2 Hawaii total tax11.27% property taxes 2.11% individual 2.64% sales and excise 6.52%
3 Vermont total tax10.75% property taxes 4.96% individual 2.29% sales and excise 3.50%
4 Maine total tax10.73% property taxes 4.65% individual 2.58% sales and excise3.50%
5 Minnesota total tax10.24% property taxes 2.87% individual 3.59% sales and excise 3.78%
6 Connecticut total tax10.23% property taxes 4.16% individual 3.24% sales and excise 2.83%
7 New Jersey total tax10.14% property taxes 5.31% individual 2.32% sales and excise 2.51%
8 Rhode Island total tax10.09% property taxes 4.80% individual 2.15% sales and excise 3.14%
9 Illinois total tax10.00% property taxes 4.14% individual 2.66% sales and excise3.20%
10 California total tax 9.52% property taxes 2.72% individual 3.44% sales and excise 3.36%
photo acting Treasurer Elizabeth Maher Muoio’
Independent Auditor Was Unable to Determine What Happened to $33 Million in State & Federal Grants, Said $475,000 in County Funds “Unlocated”
March 23, 2018
the staff of the Ridgewood blog
Ridgewood NJ,Senator Kristin M. Corrado (R-40) said a new document provided by the non-partisan Office of Legislative Services (OLS) raises questions about financial irregularities that occurred during Acting Treasurer Elizabeth Maher Muoio’s time in local government that will need to be answered at her confirmation hearing on Monday.
Sen. Kristin Corrado said that Acting Treasurer Muoio must answer questions at her confirmation hearing about missing and mishandled money during her time as a Mercer County Freeholder. (SenateNJ.com)
“The Senate Judiciary Committee has a responsibility to carefully vet gubernatorial nominees to confirm that they’re qualified and fit for the office to which they’ve been appointed,” said Corrado, a member of the committee. “During our routine research into Acting Treasurer Muoio’s time as a Mercer County Freeholder, we were disturbed to learn that the county could not account for the receipt or appropriate use of $33 million of state and federal grants. Further, we were shocked to learn that hundreds of thousands of dollars went missing, which an independent auditor was unable to locate. Given Acting Treasurer Muoio’s indication to the Judiciary Committee that she worked ‘closely’ on budgets during her time in local office, we’d like to know if she can explain these financial discrepancies that occurred on her watch.”
The OLS memo includes a 2003 audit in which an independent auditor noted “an inability of management” at Mercer County at that time to reconcile accounts receivable, including nearly $22 million of grants authorized by the New Jersey Department of Transportation (NJDOT) and more than $11.4 million from the Federal Aviation Administration (FAA).
The auditor noted that it was “unable to confirm these accounts receivable” or the assignment of grants to “specific projects approved” by the FAA, or, apparently, the NJDOT.
Corrado said these financial irregularities were concerning since the county’s property taxes increased by 86 percent during Muoio’s time working on the Mercer County budget.
“I’m concerned that during Acting Treasurer Muoio’s time managing Mercer County’s money, tens of millions in grants couldn’t be accounted for, nearly half-a-million dollars went missing, and county property tax bills skyrocketed,” added Corrado. “We need to know if she assumes responsibility for these irregularities, or if she overstated her involvement in managing the county’s fiscal affairs. These are questions that Acting Treasurer Muoio must be prepared to answer.”
Given the massive budget and tax increase proposal recently unveiled by the Murphy Administration, Corrado said it’s important for the Acting Treasurer to explain how her prior experience has prepared her for the responsibility of managing tens of billions of dollars of New Jersey taxpayers’ money.
“We must presume that Acting Treasurer Muoio helped to craft the Governor’s budget proposal, which includes the most spending in New Jersey history and a $1.7 billion tax increase,” Corrado concluded. “New Jersey taxpayers need assurances that the fiscal mismanagement that occurred during her watch in Mercer County won’t be repeated at the New Jersey Treasury.”
March 24,2018
the staff of the Ridgewood blog
River Vale NJ, assemblywomen Holly Schepisi comments on the unfair nature of the school funding formula, “If anyone ever wants to know why I fight so hard to revamp how we fund our schools in New Jersey and why I do not believe that the current formulas are fair, here is a glimpse into the school funding numbers for River Vale and Hoboken, New Jersey. River Vale is neither a “rich” nor a “poor” community but is representative of many of the communities comprising New Jersey. The average home assessment in River Vale is approximately $550,000 and pays $13,894 in property taxes with almost 70 percent ($9,725.80) of that amount going straight to school funding. In comparison the average assessed home in Hoboken is approximately $519,000 and pays $8,035 in property taxes with only 24 percent ($1,928) of that amount going to school funding. River Vale has 1202 students and receives $550,193 or $457.73 per student per year in State Aid for its schools. Hoboken has 1,872 students and receives $10,468,870 or $5,592.35 per student per year in State Aid for its schools. Hoboken has the highest median household income in Hudson County of $114,381 and the highest concentration of millionaires in that County. If we want to talk about parity and fairness, our State’s policies need a lot of work.”
March 20,2018
by Daniel J. Mitchell (https://fee.org/articles/new-jerseys-fiscal-train-wreck/?utm_source=zapier&utm)
Trenton NJ, this is from an article called , New Jersey’s Fiscal Train Wreck, Just ask Greece how well continually raising taxes and spending works.
by Daniel J. Mitchell, Daniel J. Mitchell is a Washington-based economist who specializes in fiscal policy, particularly tax reform, international tax competition, and the economic burden of government spending. He also serves on the editorial board of the Cayman Financial Review.
He starts with , here’s something especially amazing from a bit more than five decades in the past. New Jersey used to have no state income tax and no state sales tax.
Yes, your eyes are not deceiving you. The basket case of New Jersey used to be a mid-Atlantic version of New Hampshire. But once the sales tax was imposed in 1966 and the income tax was imposed in 1976, it’s been all downhill ever since.
An article in the City Journal helps explain the state’s fiscal decay.
Brendan Byrne, a Democratic former governor of the Garden State, …told mayors that the state would need a “large revenue package”… The heart of the package would be a new statewide income tax, which went into permanent effect in 1977. Byrne promised that the additional money would help relieve the high property-tax burden on New Jersey’s citizens… Four decades later, the plan has failed. …politicians and special interests don’t see new streams of tax revenue as a means to replace or eliminate an existing stream, but rather as a way of adding to the public coffers. (For those who entertain fantasies of a value-added tax replacing the federal income tax, take heed.) New Jersey’s income tax started with a top rate of about 2.5 percent; it’s now around 9 percent.
Needless to say, nothing politicians promised has happened.
Property taxes haven’t been reduced. They’ve gone up. The government schools haven’t improved. Instead, the test scores in the state are embarrassing. And debt hasn’t gone down. Red ink instead has skyrocketed.
And what’s amazing—and depressing—is that New Jersey politicians continue to make a bad situation worse. Here are some excerpts from a Bloomberg report.
New Jersey Governor Phil Murphy proposed taxing online-room booking, ride-sharing, marijuana, e-cigarettes and Internet transactions along with raising taxes on millionaires and retail sales to fund a record $37.4 billion budget that would boost spending on schools, pensions and mass transit. …Murphy, a Democrat…has promised additional spending on underfunded schools and transportation in a credit-battered state with an estimated $8.7 billion structural deficit for the fiscal year that starts July 1. …Murphy said Tuesday in his budget address to lawmakers, “A millionaire’s tax is the right thing to do—and now is the time to do it.” …The budget…would…restore the state’s sales tax to 7 percent from 6.625 percent… Murphy’s proposal would almost triple the direct state subsidy for New Jersey Transit, which has been plagued by safety and financial issues.
More taxes, more spending, followed by even more taxes and more spending.
I wonder if Greek taxpayers would want to tell their counterparts in New Jersey how that story ends.
Assuming, of course, there are any taxpayers left in the Garden State. There’s already been a big exodus of productive people who are tired of being treated like fatted calves.
And don’t forget that New Jersey taxpayers no longer have unlimited ability to deduct their state and local taxes on their federal tax return. So these tax hikes will hurt much more than past increases.
In any event, taxpayers better escape before they die.
Though I know one guy who won’t be leaving.
P.S. Anybody want to guess whether New Jersey collapses before California, Illinois, or Connecticut? They’re all in the process of committing slow-motion suicide.
