Tag: Phil Murphy

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NJBIA: With New Taxes Considered, New Jersey Faltering in Key Economic Areas

Phill Murphy -Sara Medina del Castillo

June 9,2018

the staff of the Ridgewood blog

Trenton NJ, Tax increases being considered by state policymakers this budget season would hit areas of New Jersey’s economy that are already challenged, an analysis by the New Jersey Business & Industry Association finds.

New research shows that New Jersey now has a net loss of nearly $25 billion in Adjusted Gross Income over the past 12 years, is poised to become the worst state in the nation for Corporate Business Tax (CBT), and is lagging in the rate of millionaire growth in the region.
“This concerning data should serve as fair warning to our policymakers that higher CBT, millionaires or sales taxes, on top of the cumulative costs from our recent and increasing business mandates, are only giving our business owners and residents more reason to leave our great state,” said NJBIA President and CEO Michele Siekerka. “And if they aren’t leaving, they’re certainly not planning to grow here.
“This analysis speaks to our declining competitiveness in the region and the nation. We need to improve our state’s economy through comprehensive planning, rather than excessive taxation. This is the only way to reclaim our regional competitiveness and to reverse the disturbing trend of outmigration from New Jersey.”
ADJUSTED GROSS INCOME
According to the most up-to-date Internal Revenue Service (IRS) data for tax year 2015-2016, New Jersey experienced a net loss in po­tential Adjusted Gross Income (AGI) of $3.5 billion. This exceeds the average annual rate loss of approximately $2.1 billion over the past 12 years. The change is driven by taxpayers moving out of state and taking their incomes with them.
An NJBIA analysis of the IRS’s Statistics of Income Inflow and Outflow data, finds that from tax year 2004-2005 to 2015-2016, New Jersey experienced a total loss of $24.9 billion in potential AGI.
Since tax year 2004-2005, New Jersey has now gained $66.5 billion in AGI, but lost $91.4 billion.
“This is critical income that has been lost to New Jersey’s general fund for more than a decade,” Siekerka said. “The economic impact that this loss has on the state’s economy is irrefutable and it will worsen if taxes are increased even more.”
CORPORATE BUSINESS TAX
New Jersey currently has the sixth highest corporate income tax rate (9 percent) in the United States, while Pennsylvania ranks second (9.99 percent). If New Jersey’s rate on corporations earning a net income of $1 million increases to 12 percent, as proposed, New Jersey would tie Iowa for the highest corporate income tax rate in the nation.
Meanwhile, regional competitors New York (6.5 percent) and Massachusetts (8 percent) have decreased their CBT and currently have the most competitive rates in the region.
An NJBIA analysis, utilizing 2015 data, determined that 2,373 New Jersey companies would have been impacted by the proposed surcharge. Of those, 86 percent (2,033 companies) earned between $1 million and $10 million in net allocated income.

The remaining 14 percent earning more than $10 million (340 companies) accounted for nearly 73 percent ($14.89 billion) of total allocated net income for all companies earning $1 million or more in 2015.

“While most states have either reduced or maintained their corporate tax rates, New Jersey is poised to go in the wrong direction,” Siekerka said. “Some studies link an increase in CBT to a reduction in employment and income and a decrease in CBT to quicker job creation. A CBT surcharge would only incentivize our larger corporations to expand their operations elsewhere. And if they’re stagnating here, that’s just as bad as outmigration for New Jersey.”
MILLIONAIRES TAX
A proposed “millionaires tax” provision in the FY 2019 budget would increase the top income tax rate from 8.97 percent to 10.75 percent on income above $1 million.
An NJBIA analysis found that while the number of returns for New Jersey businesses filing $1 million or more increased between 2000 and 2015, New Jersey grew at a slower rate in this category than three regional competitors – including Pennsylvania and New York. In addition, New Jersey’s total AGI for businesses filing $1 million or more ranked fifth out of seven regional states.

“Millionaires have grown around the nation during a time of economic upswing, but New Jersey’s percent change of growth is slower than most of our regional competitors,” Siekerka said. “We should be wary of our tax policies making New Jersey more dependent on the highest income earners who are being given more reasons to consider leaving the state.
Between 2010 and 2015, New Jersey’s number of businesses filing $1 million or more ranked second in the region. But tellingly, New Jersey ranked sixth out of seven regional states in total AGI growth.
The story is similar for New Jersey individuals filing a tax return of $1 million or more. When analyzing data from 2010 to 2015, New Jersey ranked third in the region in this category, but only fifth out of seven in the percentage change of total AGI. In fact, Massachusetts surpassed the Garden State in total AGI from individual millionaires in 2014 and 2015, despite having nearly 3,500 fewer filings of $1 million and more.
“NJBIA continues to call for comprehensive tax and regulatory reform to fix our structural budget deficits,” Siekerka said. “We need our policymakers to pause until the State Tax Policy Working Group, created by Senate President Steve Sweeney, and the Economic Growth Council, created by Gov. Murphy, complete their work and advance comprehensive recommendations. We need them to plan and adopt long-term, sustainable solutions rather than attempt to tax our way out of fiscal challenges.”

Sources:
An NJBIA Analysis of SOI IRS, 2004-2015
AN NJBIA Analysis of SOI IRS Migration Data, 2004 to 2005- 2015 to 2016
J. Walczak, S. Drenkard, J. Bishop-Henchman. (2018). 2018 State Business Tax Climate Index. Tax Foundation.
Office of Revenue and Economic Analysis. (Jan. 2017). New Jersey Corporation Business Tax Statistical Report. Office of the Chief Economist.
R. McGrath. (Mar. 2018). SWEENEY PROPOSES LANDMARK $758M SCHOOL FUNDING REFORM UNDERWRITTEEN BY RECAPTURING FEDERAL CORPORATE WINDFALL. New Jersey Senate Democrats. Press Release.
P. Murphy, S. Oliver. (March 2018). The Governor’s FY 2019 Budget: Budget in Brief. Office of Management and Budget.
State Government Websites

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Reader says Perfect – just operate that way all the time and we have a chance!

trenton nj

“To facilitate this review, the Governor directs each of you to submit updated plans describing the essential activities of
your department, meaning those necessary to maintain the health,safety, and welfare of the citizens of the State, and to prevent
the damage, loss, or destruction of property, if any. As you know, these activities should be limited and directly related to the
preservation and protection of life, safety and property; the care of those in State facilities, hospitals, centers, and homes; child
welfare; disease prevention and control; emergency and disaster response activities; transportation safety; the preparation and
adoption of the State Budget; and similar activities.”

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New Jersey is dead last in fiscal health based on its fiscal solvency

Phill Murphy -Sara Medina del Castillo

May 11,2018

the staff of the Ridewood blog

Ridgewood NJ, according to the The Mercatus Center at George Mason University ,New Jersey is dead last in fiscal health based on its fiscal solvency. At the end of the year, it is a toss up to whether or not New Jersey has enough money to pay its bills. These high costs are unsustainable and we need reform to get New Jersey back on a better path.

#50 | Ranking the States by Fiscal Condition: New Jersey

Eileen Norcross , Vice President of Policy Research

Olivia Gonzalez ,Research Associate

Summary

On the basis of its fiscal solvency in five separate categories, New Jersey is ranked 50th among the US states for its fiscal health. On a short-run basis, New Jersey has between 84 percent and 211 percent of the cash needed to cover short-term obligations. Revenues cover 91 percent of expenses, and net position decreased by $678 per capita in FY 2015. On a long-run basis, New Jersey’s metrics are dire. A net asset ratio of −2.92 points to a heavy reliance on debt and large unfunded obligations. Long-term liabilities are 360 percent of total assets, or $16,821 per capita, which is the highest among the states. Total primary government debt is $44.23 billion, or 8.3 percent of state personal income, far above the average for the US states. Unfunded pension liabilities, on a guaranteed-to-be-paid basis, are $224 billion, or 42 percent of state personal income. OPEB is 15 percent of state personal income, the highest ratio in the states.

Key Terms

Cash solvency measures whether a state has enough cash to cover its short-term bills, which include accounts payable, vouchers, warrants, and short-term debt. (New Jersey ranks 37th.)
Budget solvency measures whether a state can cover its fiscal year spending using current revenues. Did it run a shortfall during the year? (New Jersey ranks 49th.)
Long-run solvency measures whether a state has a hedge against large long-term liabilities. Are enough assets available to cushion the state from potential shocks or long-term fiscal risks? (New Jersey ranks 50th.)
Service-level solvency measures how high taxes, revenues, and spending are when compared to state personal income. Do states have enough “fiscal slack”? If spending commitments demand more revenues, are states in a good position to increase taxes without harming the economy? Is spending high or low relative to the tax base? (New Jersey ranks 24th.)
Trust fund solvency measures how much debt a state has. How large are unfunded pension liabilities and OPEB liabilities compared to the state personal income? (New Jersey ranks 39th.)

For a complete explanation of the methodology used to calculate New Jersey’s fiscal health rankings, download the full paper and the dataset at mercatus.org/statefiscalrankings.

To read all our work on New Jersey, go to mercatus.org/states/newjersey.

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Governor Comes Clean on Cost of State Raises

Phill Murphy -Sara Medina del Castillo

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.

https://www.bloomberg.com/news/articles/2018-05-02/murphy-says-he-doesn-t-know-cost-of-raises-he-just-gave-workers

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NJBIA Analysis Shows New Jersey Dead Last in Regional Business Climate Competitiveness

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file photo by Boyd Loving

May 3,2018

the staff of the Ridgewood blog

Trenton NJ, With New Jersey’s legislature weighing new tax hikes during budget season, the New Jersey Business & Industry Association released an analysis today that finds the Garden State already ranked last in the region for business climate competitiveness.

“This analysis should serve as an opportunity to reclaim our competitiveness and to improve the state’s economy through comprehensive planning, not excessive taxation,” said NJBIA President and CEO Michele Siekerka. “There is no better time than now to recognize the growing challenges of doing business in New Jersey and our competitive disadvantage with neighboring states.”

NJBIA tracked six individual business costs—minimum wage rate, top income tax rate, top corporate tax rate, sales tax rate, property taxes as a percentage of home value, and the top unemployment tax rate – and compared New Jersey’s rates with those of Connecticut, Delaware, Maryland, Massachusetts, New York and Pennsylvania.

Applying a scoring system to the most and least competitive regional rates, New Jersey finished last of the seven states by a considerable margin.

New Jersey currently ranks last out of all states in the region in top income tax rate (8.97 percent), sales tax rate (6.625 percent) and property tax paid as a percentage of home value (2.16 percent). New Jersey is also sixth out of seven states in top corporate tax rate (9 percent). The Garden State has the third lowest minimum wage rate in the region at $8.60 per hour and, more positively, has the lowest top unemployment tax rate in the region of 5.8 percent.

However, it’s foreseeable that New Jersey’s overall regional business climate could further decline with discussions of a minimum wage increase to $15 per hour, proposals to raise the top income tax rate for those making more than $1 million, and consideration of a Corporate Business Tax increase. These are in addition to the added costs brought on by the mandatory paid sick leave bill signed into law and the proposed sales tax increase to 7 percent.

“It’s important to recognize that New Jersey businesses are already paying their fair share when it comes to tax rates and the additional cumulative costs that are being discussed and proposed could result in stagnation of our businesses, reduced staffing and hours or automation, according to our members,” Siekerka said. “We need tax and regulatory reform to address structural deficits in our economy, such as public pension and health benefits costs, and school funding. We cannot tax our way out of these challenges.”

Using data compiled by NJBIA policy analyst Nicole Sandelier, NJBIA scored the regional rates from 1 (most competitive in the region) to 7 (least competitive). New Jersey’s cumulative regional business climate score was 31 after totaling the six rates. Delaware has the best regional score at 17, followed closely by Maryland at 20. Pennsylvania (23) and New York (24), New Jersey’s largest outmigration states, finished third and fourth, respectively.

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How High Are Recreational Marijuana Taxes in Your State?

MarijuanaTaxes 011

April 26, 2018
the staff of the Ridgewood blog

According to Katherine Loughead and Morgan Scarboro of the Tax Foundation public opinion increasingly favors the legalization of recreational marijuana, a growing number of states must determine how to tax legal sales of cannabis.

Will New Jersey Be next? One of the biggest signals of change has been the election of Democrat Phil Murphy, a former Goldman Sachs executive, and the incumbent Governor of New Jersey. He’s has already instilled a belief that New Jersey will embrace the plant recreationally.

To date, nine states (Alaska, California, Colorado, Maine, Massachusetts, Nevada, Oregon, Vermont, and Washington) and the District of Columbia have legalized recreational marijuana, but only eight of these jurisdictions have legal markets. The table below highlights the states that have implemented legal markets and levy taxes on recreational marijuana.

Of the states with legal markets, Alaska is the only state that does not impose some form of sales tax on end-users. In each of the other states, taxes levied on the sale of marijuana far exceed the general sales tax rate levied by that state:

In Alaska, which has no states sales tax, marijuana growers pay a tax of $50 per ounce when selling the product to marijuana dispensaries or retailers. While the cost of taxes paid is passed on to customers in the form of higher prices, end-users do not pay a sales tax when purchasing marijuana.

In California, cultivators pay a per ounce of product tax at a rate of $9.25 per ounce of marijuana flowers and $2.75 per ounce of leaves. In addition, retailers collect from customers a 15 percent excise tax on the average market price of the product.

Colorado imposes a 15 percent excise tax on the sale of marijuana from a cultivator to a retailer. In addition, the state levies a 15 percent sales tax (up from 10 percent in 2017) on retail sales to customers.

Maine legalized recreational marijuana in 2016 by ballot initiative but has not yet established a legal market. Pending legislation would tax sales of marijuana at a rate of 10 percent and levy an excise tax on cultivators at a rate of $335 per pound of flower, $94 per pound of marijuana trim, $1.50 per immature plant or seedling, and $0.30 per seed. Governor LePage, however, has vowed to veto the legislation.

Massachusetts, concerned its previous ballot initiative approved rate of 3.75 percent was too low, raised the excise tax rate to 10.75 percent in 2017.

Nevada imposes an excise tax on the sale of marijuana by a cultivator to a distributor. This rate is set at 15 percent of the Fair Market Value as determined by the Nevada Department of Taxation. In 2017, Nevada created a new 10 percent sales tax paid by consumers.

Oregon, which does not have a general sales tax, levies a 17 percent sales tax on marijuana.
Washington levies a 37 percent sales tax on recreational marijuana.

Vermont legalized the possession of marijuana this year but did not create a legal market. D.C. also allows for possessing and growing of marijuana but does not allow for sales in a legal market.

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New Report Ranks New Jersey Bottom Five in Economic Outlook

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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.”

 

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New Jersey is currently ranked 49th in the United States for its economic performance

Phill Murphy -Sara Medina del Castillo

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: 

Biggest Gainers
Spots Gained
Biggest Losers
Spots Fell
Idaho
8
Tennessee
7
Georgia
6
South Carolina
6
Connecticut
6
Pennsylvania
5
Nebraska
4
Texas
5
Arizona
3
Illinois
6

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
Bottom Ten
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.

Cision Image .png

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

      Overview (2018 Edition)
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
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Murphy removes Respected Wall Streeter and Pension Reformer Tom Byrne from State Investment Council

22241

April 18,2018

the staff of the Ridgewood blog

Trenton NJ, Gov. Phil Murphy has removed Tom Byrne from his position on the State Investment Council, which he had held since 2010.Former Gov. Chris Christie appointed Byrne, who is managing director of Byrne Asset Management.

Byrne founded Byrne Asset Management in 1998. He serves as the Managing Director and Head of Equity Portfolio Management and brings over 35 years experience in the securities industry to his clients.

In early 1987, Byrne published a book on the relationship between stock index futures and the stock market, warning readers that “the stock market may well eventually crash” and that stock index futures “might accelerate it”. In 1988, he served as a member of the Brady Commission staff that reported to President Reagan on the causes of the 1987 stock market crash.

Byrne has been a critic of the current New Jersey pension system and come under fire from unions. Republicans expressed concern over the ouster of Byrne, who’s the son of the late Gov. Brendan Byrne and a onetime chair of the state’s Democratic Committee. The state pension commission warned pension and health benefits will eat up roughly a quarter of the state operating budget by 2023 if state officials don’t undertake difficult reforms.

With Byrnes help the state pension-system investments are up 8.6 percent during the 2017 fiscal year, according to the New Jersey State Investment Council. The returns are even more impressive over the past 12 months, topping 15 percent.

Byrne also won praise from union officials who serve on the investment council for helping to broker a compromise that cut down on the fees paid to outside money managers. However Byrne’s work on Gov. Christie’s bipartisan pension panel eventually cost him backing from public employee unions and his moderate views convinced New Jersey Democrats he’s not ‘Blue’ enough.

“Tom Byrne is one of the smartest people in government finance on either side of the aisle in New Jersey,” said state Senator Declan O’Scanlon, R-13th District, in a statement. “Tom has integrity. He is one of the few people in Trenton who isn’t afraid to say ‘no’ to the unions. He is a fierce and fair advocate for pensioners and taxpayers alike.

“This is not the kind of public servant we should be losing,” O’Scanlon said. “I am very concerned that the Murphy administration seems to be purging qualified, intelligent public servants – with no regard to the high caliber of work they have done for the people of New Jersey, and the continued value they are throwing away.”

Byrne, said publicly since November that he intended to resign by June 30 and that the governor was more than welcome to replace him sooner.

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Phil Murphy Appoints Bob Gordon (D-38) to the Board of Public Utilities

Senator Bob Gordon (D-38)

April 4,2018

the staff of the Ridgewood blog

Fair Lawn NJ, State Senator Bob Gordon (D-38) is going to the Board of Public Utilities (BPU).Bergen sources had speculated for some time on this eventuality and today a source confirmed it.Gordon represents Hawthorne, Fair Lawn, Glen Rock, Bergenfield, Hasbrouck Heights, Maywood, Lodi, Oradell, New Milford, Paramus, Oradell, Rochelle Park, Paramus, River Edge, and Saddle Brook.

As chairman of the N.J. Senate committee responsible for overseeing public transportation issues Gordon came under criticism ,for seeming out of touch with New Jersey Transits problems and failing to act until far to late.

The departure of the battleground district senator sets up the most likely potential for Assemblyman Joe Lagana (D-38) and Assemblyman Tim Eustace (D-38) to challenge for it. Republicans have long eyed the district and have come close to taking it several times.

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WalletHub Ranks New Jersey 7th Highest Taxed State, before Murphy’s Big Tax Increase

Phill Murphy -Sara Medina del Castillo

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%

 

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Governor No Show , No Sign of Phil Murphy During First State Wide Emergency of His Term

phil murphy

March 6,2018

the staff of the Ridgewood blog

Ridgewood NJ, this week during the Nor’easter over 200,000 fellow New Jersey residents originally lost their power and as of yesterday still over 80,000 people are shivering in the cold , one question remains, and one question only where is the governor?

Governor Phil Murphy has been a complete no show during his first emergency . The word is the no gov has been partying with has been comedian George Lopez , instead on focusing on the state he was elected to govern .

Carlos Gutierrez said in a Facebook post , “Saw George Lopez at The Stress Factory on Friday, but that puto does not allow cell phones or pictures of him taken during his show, so I took a pic with New Jersey’s Governor, Phil Murphy instead, lol”

Funny if it was governor Christie our lame brain media with be 24/7 with why he is not out shoveling peoples driveways .

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Threat of Massive Murphy Tax Increase Already Driving Away Jobs from New Jersey

Phill Murphy -Sara Medina del Castillo

February 21,2018

the staff of the Ridgewood blog

Trenton NJ, since the election of Phil Murphy New Jersey’s unemployment rate has continued to increase putting it now almost one full percentage point higher than the U.S. unemployment rate.

New Jersey’s economic growth has lagged behind the rest of the country for years, according to the U.S. Bureau of Labor Statistics (BLS). But in late 2015, New Jersey’s unemployment rate started to improve. Governor Chris Christie applauded the state’s economic growth.

Last summer, though, the state’s unemployment rate increased again, sharply departing from the national trajectory. The rate increased for nearly four months before dipping slightly in January.

Now, New Jersey’s rate sits at 5.0 while the U.S. rate is 4.1. Critics of the Governor Murphy point out his push for massive tax increases may have already had  the effect of increasing flight out of the state of jobs .

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Reader calls Murphy’s plan to make voluntary contributions to pay for local services a tax avoidance scheme

irs

In other words, Gov. Murphy wants you to participate in a transparent tax avoidance scheme that will certainly result in you getting fined out of your wazoo by the IRS. How can people justify their vote for this obvious disaster-in-advance? Christie was a complete jerk, but electing someone who will outdo Corzine, McGreevey and him and as a joke is no solution.

 

see https://theridgewoodblog.net/governor-murphy-mobilizes-mayors-to-implement-policies-providing-tax-relief-in-their-municipalities/

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Trenton Tries to Sneak Thru Pay Raises for judges, county prosecutors, gubernatorial Cabinet members and senior legislative staffers

Steve-Sweeney-Atlantic-City-finances

 

February 6,2018

the staff of the Ridgewood

Trenton NJ,  State lawmakers were back to their old tricks on Monday quietly advancing legislation that would raise the salaries of judges, county prosecutors, gubernatorial Cabinet members and senior legislative staffers, passing the bill out of committee without a single word of discussion.

The measure, sponsored by state Senate President Steve Sweeney and two of his top Democratic allies giving the governor the ability to boost the salaries of all his Cabinet members from $141,000 to $175,000 a year.

The new legislation would allow for higher pay for the four top legislative staff members, enshrining in law the right of the Assembly speaker, the Senate president and each of the minority leaders to pay their top aides up to $175,000.

The salaries of all state judges, Supreme Court justices, prosecutors, surrogates, county clerks, registers of deeds and mortgages and sheriffs would increase by $24,000. The hikes would be phased in over three years in $8,000 increments. Further raises would be linked to the consumer price index.

County prosecutors and Superior Court judges now make $165,000, and Supreme Court justices about $186,000, while the chief justice makes about $193,000. Current salaries vary for the other positions.