the staff of the Ridgewood blog
Wyckoff NJ, Assemblyman Christopher DePhillips joined Jill Horner on Comcast’s Newsmakers last week to discuss capping state spending each year at the same 2 percent placed on local government tax levies. Municipalities have a two percent cap, which is credited with helping to slow the rapid growth of New Jersey’s notoriously high property taxes; but the state is not subject to that cap.
“The towns have been largely living within the two percent cap without a problem,” DePhillips (R-Bergen) explained to Horner. “I think it would be hypocritical for us not to do this when we are imposing the same requirement on towns.”
Continue reading Assemblyman Christopher DePhillips , “When you pass a budget where we had 18 new tax increases built into that budget, you scare the daylights out of people,”
file photo by Boyd Loving
by Kevin Ryan
It’s a simple concept that has eluded many politicians and ideologues, especially on the left. When you raise taxes, people and businesses will leave, bringing with them those taxable incomes your government depends on. One look at the migration patterns within the United States verifies just that.
A book on the subject, How Money Walks, uses official statistics from the Census and the IRS to explore the subject. It found that, between 1995 and 2010:
• The nine states with no personal income taxes gained $146.2 billion in working wealth
• The nine states with the highest personal income tax rates lost $107.4 billion
• The 10 states with the lowest per capita state-local tax burdens gained $69.9 billion
• The 10 states with the highest per capita state-local tax burdens lost $139 billion
According to the authors, “The states that gained working wealth are growing and thriving. The states that lost working wealth lost their most precious cargo—their tax base—and the consequences are dire: stagnation, deterioration, an economic death spiral as they continue to raise taxes and lose people, businesses, and working wealth. The numbers don’t lie.”
Its website includes a fascinating interactive map that shows where people and their money moved to, on a state and even county basis, here: http://www.howmoneywalks.com/irs-tax-migration/
(Note: the interactive map doesn’t work on the Safari browser, so iOS users should view it on the Puffin app instead).
Another website by the authors includes a calculator that will tell you the tax implications of moving from your current state to a different one, here: http://www.savetaxesbymoving.com/
More expected to flee New Jersey as baby boomers age
For Raymond Francisco, landing a job at the General Motors auto plant in Linden at 25 years old was like winning the lottery.
The New Brunswick native was a welder by trade, and enjoyed working hard for the good money he made at the plant. But when GM announced in 2002 it would close the factory — about six years after he started — Francisco decided he had to go where the jobs were.
That meant packing up his wife, two small children and moving to Lordstown, Ohio, where GM offered him another job at an assembly plant.
People are leaving New Jersey at a higher rate than 47 other states, just behind New York, which is No. 1, and Illinois, according to James Hughes, a demographer and dean of the Edward J. Bloustein School of Planning and Public Policy at Rutgers University, New Brunswick. (Kachmar/Asbury Park Press)