Gubernatorial Malpractice, Part II: Gov. Murphy Is AWOL on Learning Loss, So Sen. Ruiz Steps Up for NJ Kids
February 16, 2024InsiderNJ’s Fred Snowflack Flacks for Mendacious Michael Gottesman and His NJEA-Funded Coalition. Why the Bias, Mr. Snowflack?
February 27, 2024NJ appears to be heading into budget season with lagging revenues. With state government spending up 56% under Gov. Murphy and a record $54.4 billion budget last year, lawmakers will be scrambling to make revenues match spending. Either spending will have to be cut or taxes raised, or both, and the word in the press is that lawmakers are looking at raising taxes, as usual. Raising taxes would hurt NJ citizens and taxpayers but benefit the deep-pocketed and politically powerful government unions, led by the NJEA. Who will win, the people or the special interests?
NJ already has among the highest — and in many cases, the very highest — taxes in the nation, as well as the very worst tax climate for businesses for 8 years in a row. Importantly, NJ taxes are much higher than those in the neighboring states PA, DE and CT, and are right up there with NY. These are the states with which NJ competes for businesses and taxpayers.
How high are current NJ taxes? Here’s a rundown of the most recent data:
Property Taxes: NJ has the highest property taxes in the nation, according to a recent Yahoo Finance survey of the worst 15 states. NJ had both the highest effective rate at 2.21% as well as the highest average tax at $10,409. Neighboring states: NY 1.38% and $5,112; PA 1.49% and $3,959; and CT 1.76% and $6,571. (DE was not in the bottom 15 states).
Bottom line: NJ property taxes are the highest in the nation and much higher than neighboring states.
Income Taxes. NJ has the 3rd-highest top marginal income tax rate in the nation at 10.75%, trailing only CA 13.3% and NY 10.9%. Neighboring states: PA 3.07%, DE 6.5%, and CT 6.99%.
Bottom line: NJ is among the highest in the nation and much higher than all the neighboring states except NY.
Sales Taxes: NJ is in the middle of the pack for combined state and local tax rates at 6.6%. Neighboring states: NY 8.53%, PA 6.34%, DE 0.0%, CT 6.35%.
Bottom line: NJ is higher than the neighboring states except NY.
Corporate Income Tax: NJ has the 4th-highest top marginal corporate rate at 9%. Neighboring states: DE 8.7%, PA 8.49%, CT 7.5%, and NY 7.25%. Murphy recently let a 2.5% surcharge lapse, but for several years prior, NJ had the highest corporate tax rate in the nation at 11.5%.
Bottom line: NJ is among the highest in the nation and much higher than all the neighboring states.
Tax Climate for Businesses: In this index of all major taxes, NJ is ranked dead last, 50th out of 50 states. Neighboring states: NY 49th, PA 31st, DE 21st, and CT 47th.
Bottom line: NJ has a worse tax climate for businesses in the nation.
As for this year’s budget, the word in the press is that lawmakers are considering raising taxes, as usual. In particular, there is talk of lifting the 2% property-tax cap put in place by Gov. Christie and/or reimposing the 2.5% corporate surcharge. NJ would then have both the highest property and corporate taxes in the nation. This would hurt NJ citizens, taxpayers and the state’s long-term prosperity. Why would lawmakers do this?
Because the main beneficiaries of higher taxes and more government spending are the government unions, led by the NJEA. They also happen to be Murphy’s biggest political supporters and deep-pocketed funders of many lawmakers.
Who will win, the people or the special interests?