Thread: CHRISTIE TO UNVEIL NEW BUDGET AS NJ SINKS DEEPER INTO DEBT

CHRISTIE TO UNVEIL NEW BUDGET AS NJ SINKS DEEPER INTO DEBT



by FRANCES MARTEL 24 Feb 2014, 12:29 PM PDT 7 POST A COMMENT
The economic condition of New Jersey has declined significantly during the tenure of Governor Chris Christie, with the state reaching record levels of debt in 2013. Governor Christie is set to propose an annual budget to the state tomorrow, one the Star-Ledger suggestscould sink the state deeper into fiscal trouble.

After a devastating 2013 for the state--one in which Moody's lowered their outlook on the state and a study found it to be the least economically solvent in the country--Christieproposed changes in the State of the State address last year that may require workers to pay more money in pensions while trying to hold back the Democrats' call for a tax increase. Christie and Republicans in the legislature are calling for a tax cut to stimulate the economy, something Democrats are fuming about as "irresponsible." One Democrat theLedger talked to insisted that "the roof is falling on us" and generating less revenue would devastate the economy. Moody's listed insufficient revenue as a reason for lowering New Jersey's outlook last year.
While Democrats call for increased taxes, Republicans are highlighting the many problems with the current administration, which appears to be simply spending too much money to be able to significantly lower the debt. As the Ledger notes, "the cost of education, health care and transportation programs is set to explode by billions of dollars over the next four years." Christie appeared to be more concerned about the projects he proposed in his State of the State address than the rising debt, however. The paper notes that Christie has recently criticized the increase in state funding of pensions last year as a roadblock to developing other programs or paying for new initiatives like longer school days.
The public will not know what the New Jersey budget looks like officially until tomorrow. What residents do know is that all budgets, by law, must be balanced, and that New Jersey has bills to pay that it cannot let go unheeded. According to the Associated Press, the probability that Democrats will wholeheartedly approve this new budget is low, and the plan may stall in the legislature for some months. The budget being proposed tomorrow is set to take effect on July 1, as soon as the legislature approves it. Gridlock between Republicans and Democrats could escalate to a point that the budget is not passed in time in the worst case scenario, which would significantly damage the state's fiscal situation and continue to inflate the debt.
Christie has not taken media questions on the matter, though the budget did come up in a town hall meeting with residents last week (budget concerns made smaller headlines than a resident demanding that Christie "throw out all your Bruce Springsteen CDs"). Christie has kept his head low and, for the most part, kept his public appearances to obligations for the Republican Governors Association since the story of his senior staff closing down the George Washington Bridge for political retribution became a major headline. On Thursday, Christie will travel to Boston for a joint fundraising event with 2012 Republican presidential candidate Mitt Romney.

http://www.breitbart.com/Big-Governm...eper-Into-Debt

I REFUSE to vote for Pork Chop and 4 years of all you can eat Chicken Wings at the WH .... Fiscal Incompetence at the state level will only fester at the Federal Level

High Taxes Increasingly A Reason To Flee The Garden State

March 18, 2014 by Ben Bullard

A decade of sky-high personal income tax on wealthy residents, coupled with a series of regressive taxes that find other ways to bilk money out of the lower income brackets, threatens to propel an unprecedented rate of emigration out of New Jersey, as residents seek other places to shelter from State government more of the wealth they’ve earned.
That’s the finding of a recent study by Regent Atlantic, a New Jersey-based investment advising firm, which concludes that “the belief that New Jersey has some of the highest income taxes in the nation adds to the growing desire to move out of the state.”
Since 2004, New Jersey has taxed its wealthiest residents — those earning $500,000 or more per year — at a base rate of 8.97 percent, up from a previous base of 6.37 percent. A 2010 study by two Princeton sociologists maintained that the so-called “millionaire’s tax” instituted in 2004 had no detrimental effect on New Jersey’s wealthy population, a finding the Regent study does not explicitly dispute.
Those whom the State forces to pay the “millionaire’s tax” account for only 1 percent of New Jersey’s population — yet that small demographic pays 42 percent of all personal income tax statewide. And 39 percent of New Jersey’s State-collected tax revenues (as opposed to Federal apportionments, etc.) come from the personal income tax.
The new study finds that the income tax, along with onerous estate taxes, property taxes and multiple layers of fees and taxes that predominate at both the municipal and State levels, are driving wealth out of New Jersey as residents find ways to set down legal roots elsewhere — primarily in the less-choking tax environments of neighboring Pennsylvania, and Florida.
And the study cautions that New Jersey will reach a population tipping point, particularly among its wealthiest residents, if the Legislature doesn’t attempt to reform its tax and spending matrix across the board:

While tax migration may currently be more of a threat than an actual problem, it could represent a growing challenge for New Jersey’s future. Several professionals we interviewed believe it is already a major problem for the state. Sam Weiner, a tax attorney with Cole Schotz, says, “New Jersey income and estate taxes have become such a prominent issue that residency has become a prime topic in every other meeting that I have.” Michael Grohman, a tax attorney with Duane Morris, LLP, claims that his wealthy clients are “leaving [New Jersey] as fast as they can.”
…The belief that New Jersey has some of the highest income taxes in the nation adds to the growing desire to move out of the state. The combination of these factors could cause businesses and wealth to leave the state, with New Jersey’s already weak economy continuing to struggle.

Population trends won’t tell the whole story — the study makes no claim that high taxes alone are causing a net population loss. But there are some interesting observations to note about New Jersey’s population and demographic trends since 2000.
Between the 2000 and 2010 census, New Jersey experienced a net population gain of 4.5 percent, less than half the national average of 9.7 percent over the same period. That drop-off came after the State had gained 8.9 percent in the decade between 1990 and 2000. Since 2010, the State’s overall population growth has continued to wane, increasing only .7 percent between 2010 and 2013.
Since 2010, the rate of emigration out of New Jersey has accelerated faster than the influx of immigration — much of it illegal — into the State, and aging baby boomers comprise the fastest-growing native population demographic.

Filed Under: Liberty News, Staff Reports

http://personalliberty.com/2014/03/1...-garden-state/