Is New Jersey socialist? Gov. Christie to the rescue!

I received the following from Blackswan87:
New Jersey: the third worst state to live in. Economy-wise that is. The crux of Terrence Dopp and Elise Young’s article “NJ Causes Rich to Move, Economist Says” is that New Jersey’s higher than average taxation of the wealthy is causing a backlash: the wealthy are moving out of state… And taking their highly prized and highly taxable income with them.
There are two contending viewpoints expressed throughout the article: Governor Chris Christie recognizes the need to keep the wealth in-state and has vetoed bills that raise taxes on those earning $1 million or more while Democrats, Stephen Sweeney, a prominent lawmaker in particular, proposes the complete antithesis and advocates for hiking the tax on the wealthy even higher. Ultimately it is hoped on both sides that people will begin to stop migrating out of New Jersey, taking their wealth with them. There is a slight ray of hope, however: this hoped for lack of movement may actually happen- but stem from something ostensibly detrimental: the slow housing market. The market’s lack of impetus is ultimately keeping people in state, accidentally helping the New Jersey economy.
While this article is insightful into the chaos that is New Jersey economics, it is nevertheless depressing that the American Dream – working diligently for the hope of a payout later – is being thwarted by those in power. Taxing the wealthy, merely because they earn more, is Socialistic to the core and ultimately damaging to the economy; luckily Gov. Christie seems to have a firm hold on the reigns… But for how much longer will fiscally responsible Republicans be in control of a blue-to-the bone state? While this article offers hope in that Republicans are holding firm, there is the portentous impending doom that is tangible: Democrats with their spend thrifty ways will ultimately derail the “improving economic […] growth”.
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About Mark P. Holtzman

Chair of Accounting Department at Seton Hall University. PhD from The University of Texas at Austin. Worked at Deloitte's New York Office. BSBA from Hofstra University.

3 comments

  1. I think the Stanford cited in the article accurately shows what will happen with a state income tax increase. People will typically stay where their jobs are. Millionaires in NJ have always had the option to leave for a state with a smaller tax rate. They don't because NJ is a highly desirable area. People generally are not leaving NJ to move to s state like Florida unless they are approaching retirement and they will no longer need their salary. I understand this is anecdotal but my parents, my wife's parents and my grandmother have all been talking about leaving NJ but it has to do with their property taxes. They are paying between $13,000 and $17,000 each yeah and while they are approaching (or well past for my grandmother) retirement, they know that the increases will be unsustainable for them. If I were making $1,000,000 per year, It would take a lot more than a 2% tax increase for me to make me leave my job and move to Florida or even extend my commute by moving to Pennsylvania.

  2. It is all about the principle. People work all of their lives to get to the point where they can live comfortably and make a living that may be a million dollars. While the extra 2% may not kill them. It provides a basis for government to say then taking a bit more won't kill them either. There is a really twisted view of democrats. Most people have an off depiction of democrats as helpers of the poor and that may in fact be the intention; however, many times these democratic viewpoints do not give the less wealthy the full picture. By imposing tax increases even by a small percentage, it may cause the wealthy to do things differently and realistically speaking the wealthy are the ones who feed the economy and create jobs.

  3. I think our progressive tax system in America has worked well for us. The problem is that we do not adjust it to what our economy demands. During times when we see a slow economy, and the wealthy people are the only ones making money, we need to increase their tax rates. Otherwise we will not take in the revenue we need. Conversely during times when we see a strong economy, and the "job creators" are creating good jobs then we should have the ability of lowering their top marginal tax rates. This can work at federal and state levels. When unemployment levels go up, it makes sense that revenue will decrease. We can't just keep rolling along with budget deficits. We need to increase taxes and do it in a way that will not hurt chances of recovery.but again, the fairness aspect only works if we are willing to give back to the rich when they create a strong thriving economy.

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