Posted on 07/02/2018 12:44:58 PM PDT by bkopto
Call it the consummate New Jersey compromise. Governor Phil Murphy and State Senate leader Steve Sweeney have been fighting over whether to raise tax rates on individuals or businesses, and over the weekend they decided to raise taxes on both.
Messrs. Murphy and Sweeney agreed to raise the state’s income tax on residents making more than $5 million to 10.75% from 8.97% and the corporate rate on companies with more than $1 million in income to 11.5% from 9%.
This will give New Jersey the fourth highest marginal income tax rate on individuals and the second highest corporate rate after Iowa. The corporate tax increase will supposedly last two years and then phase out over the next two years, but that’s what politicians always say.
The flight risk will increase with the new limit of $10,000 on deducting state and local taxes on federal tax returns. This is why Mr. Sweeney wanted to avoid raising individual tax rates, but Mr. Murphy insisted on it. The new Governor is another progressive who became rich working for Goldman Sachs but seems offended that someone else might also get rich. ....
The fair question is why any rational person or business that can move would stay in New Jersey.
(Excerpt) Read more at wsj.com ...
Triple whammy for sure. Have lived here for 34 years. Most of the state outside of Newark, Trenton and Camden is conservative. Where I live is bucolic countryside, but while Christy tried, the Democratic legislature and the municipal workers rule politics here. Closing the plant I run and will move to West Virginia. Wife stuck here with friends and doctors, but we will go soon. Many other little taxes and regs. make small business unloved and non competitive. NY and Conn. no better.
The exodus from NJ will continue until there is nobody left to strangle with taxes. All of the revenue is going to fund pensions, “poor” people and NJ Transit.
It's surrounded by water on 3 sides and mountains on the other. They just need to blow up the bridges and tunnels, and scuttle the ferry boats.
No, there is a $10,000 deductible.
15 foot Ryder Truck rental from Florida to NJ = $200.00
15 foot Ryder Truck rental from NJ to Florida = $1200.00
Ya gotta admit, 3,000 SF is scarcely an “average” home size...
I wouldn’t be surprised if Gov. Murphy and Sen. Sweeney are clueless about the federal government’s constitutionally limited power to appropriate taxes, clarified by a previous generation of state sovereignty-respecting Supreme Court justices.
“Congress is not empowered to tax for those purposes which are within the exclusive province of the States.” Justice John Marshall, Gibbons v. Ogden, 1824.
"The smart crooks long ago figured out that getting themselves elected to federal office to make unconstitutional tax laws to fill their pockets is a much easier way to make a living than robbing banks." —me
"Federal career lawmakers probably laugh all the way to the bank to deposit bribes for putting loopholes for the rich and corporations in tax appropriations laws, Congress actually not having the express constitutional authority to make most appropriations laws where domestic policy is concerned. Such laws are based on stolen state powers and uniquely associated stolen state revenues." —me
I strongly suspect that residents and businesses of NJ would prefer that government leaders of their revenue-starved state would support Pres. Trump in putting a stop to unconstitutional federal taxes, taxes that the post-17th Amendment ratification Congress cannot justify under its constitutional Article I, Section 8-limited powers, in order to find new state revenues.
In other words, although wealthy citizens and businesses in a given state would probably still pay more taxes than they are now to make state leaders happy, weathy citizens and businesses probably wouldn’t end up paying as high a percentage in new taxes if Trump led the states to put a stop to unconstitutional federal taxes.
Patriots ultimately need to support Pres. Trump in leading the states to repeal the 16th and ill-conceived 17th Amendments. Doing so would also make Trump’s vision for MAGA last for many generations imo.
Why is NJ raising taxes? Are they offering more services to their citizens?
It’s not just Florida who is negatively impacted. Delaware is a reliably blue state in large part due to the escapees from Jersey who forget that voting Democrat is a recipie for disaster
[Many other little taxes and regs. make small business unloved and non competitive. NY and Conn. no better.]
They need the money to buy more votes.
I’m paying $3k for $389k
This article walks through the details of state and local tax deductions:
https://smartasset.com/taxes/heres-how-the-trump-tax-plan-could-affect-you
The new limit is $10,000.
It is a quadruple whammy because many of the wealthier New Jerseyites are baby boomers contemplating retirement.
The polticians of NJ just made their decision a lot easier—make sure they live at least six months in Florida.
The state of MA did something similar this past week. Jeff Kuhner noted this is punish Trump voters and keep the steeple from seeing the MAGA economy.
Depends of course on area. We have a townhouse in AZ and based on comps...sq ft, fair market value, etc we would be paying maybe 5/6 k for roughly the same property. Our latest appraisal (2016) 440k. Real estate taxes are bad here...everyone hates.
“fighting over whether to raise tax rates on individuals or businesses, and over the weekend they decided to raise taxes on both.”
... otherwise known as a democrat compromise.
We need to impose some kind of ideological requirement for those wishing to move to Florida. Those who want to keep voting for the same policies that caused them to leave their former states are not welcome.
Lived in DE 18 years. Plant there too was harassed by coastal zoning. Better now and no sales tax. Property taxes low but small state makes for traffic congestion in New Castle county where all the business is. Downstate is more like the South, farms and beaches. Worth a look.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.