Chasing Jerseyans Away
This piece by Senator Anthony Bucco appears in this mornings Asbury Park Press:
Corzine budget will help chase New Jerseyans away
New Jersey is fast becoming unaffordable, and Gov. Corzine's budget plan will only hasten the process.
Forty-seven states enjoy surpluses in their treasuries. Yet, New Jersey has a $4.5 billion deficit. Two other states that have deficits, Louisiana and Mississippi, were hard hit by hurricanes Katrina and Rita. With their current deficits, these two states have not raised their property taxes.
...
To the citizens who still remain and would like to continue to call New Jersey home: Are you truly better off today than you were four years ago?
Our residents, especially senior citizens and young families, are being taxed out of their homes and communities. During the last four years, local property taxes have gone up 25 percent, and 33 state taxes have been raised, forcing New Jersey residents to send an additional $10 billion to Trenton.
...
This scenario may seem like fiction, or partisan fear-mongering, but recent trends show it's becoming reality. From July 1, 2004, to July 1, 2005, we had a record net loss of 57,000 taxpaying residents — an increase of more than 100 percent from 2002.
Overwhelmingly, residents are fleeing our high cost of living. These are people who pay far more in taxes than they are getting in services. Senior citizens and young families aside, this stampede of middle-class professionals leaving the state will endanger our long-term viability.
...
A 2005 New Jersey Business and Industry Association survey showed New Jersey's business-favorable ratings have fallen or stagnated for five consecutive years. Only 28 percent of the survey's respondents believe this is a good place for business expansion. That's down from 50 percent in 2001.
New Jersey also has one of the worst records in the nation when it comes to business tax policy. A recently published Tax Foundation report shows New Jersey is ranked 49th out of 50 states in the Tax Foundation's 2006 Business Tax Climate Index.
...
During the last four years, business owners and managers have seen their state tax bills increase $3.2 billion. This must stop if we want to grow jobs and improve the economic outlook for New Jersey families.
Caveat Emptor!
Grim
Corzine budget will help chase New Jerseyans away
New Jersey is fast becoming unaffordable, and Gov. Corzine's budget plan will only hasten the process.
Forty-seven states enjoy surpluses in their treasuries. Yet, New Jersey has a $4.5 billion deficit. Two other states that have deficits, Louisiana and Mississippi, were hard hit by hurricanes Katrina and Rita. With their current deficits, these two states have not raised their property taxes.
...
To the citizens who still remain and would like to continue to call New Jersey home: Are you truly better off today than you were four years ago?
Our residents, especially senior citizens and young families, are being taxed out of their homes and communities. During the last four years, local property taxes have gone up 25 percent, and 33 state taxes have been raised, forcing New Jersey residents to send an additional $10 billion to Trenton.
...
This scenario may seem like fiction, or partisan fear-mongering, but recent trends show it's becoming reality. From July 1, 2004, to July 1, 2005, we had a record net loss of 57,000 taxpaying residents — an increase of more than 100 percent from 2002.
Overwhelmingly, residents are fleeing our high cost of living. These are people who pay far more in taxes than they are getting in services. Senior citizens and young families aside, this stampede of middle-class professionals leaving the state will endanger our long-term viability.
...
A 2005 New Jersey Business and Industry Association survey showed New Jersey's business-favorable ratings have fallen or stagnated for five consecutive years. Only 28 percent of the survey's respondents believe this is a good place for business expansion. That's down from 50 percent in 2001.
New Jersey also has one of the worst records in the nation when it comes to business tax policy. A recently published Tax Foundation report shows New Jersey is ranked 49th out of 50 states in the Tax Foundation's 2006 Business Tax Climate Index.
...
During the last four years, business owners and managers have seen their state tax bills increase $3.2 billion. This must stop if we want to grow jobs and improve the economic outlook for New Jersey families.
Caveat Emptor!
Grim
40 Comments:
I am not surprised. I used to work in site location for corporations. OUr firm would not locate anything in NJ intentionally. BTW we were based in NJ. BUsiness climate here sucks and most governors keep raising taxes on businesses. Is it any wonder we are losing good jobs?
$100,000 price drop:
MLS 2214031
19 Midland Terrace, Summit
$849,000 => $749,000
Days on Market: 147+
47 states have budget surpluses and NJ is in a deficit. Is there ANYTHING good about this state besides being close to NY? Run! Run west and south! If family is not tying you down, why the heck are you staying here?!?
The reason businesses leave NJ is due to the high cost of doing business here. It's no surprise that there the State's manufacturing base has dwindled.
Overall, NJ is overrated. The cost of living here is a joke, taxes (income, sales, use and property)are out of control, real estate prices are even worse. Traffic and overcrowding - thanks to McGreevey's answer to suburban sprawl is choking our highways.
If I didn't have so many family members in NJ, I would have moved years ago.
Also, the proposed increase in the sales tax rate sounds like the echoes of the Florio administration and we all know his fate; he's the only one-term governor in NJ history.
sad to say NJ is a joke,including our government.
If I didnt have family here i would not think twice about leaving.
Its all about the family ties in NJ, that's why we stay too!
unrealtor appreciate the mls updates but can you put things into perspective and show what the house sold for in past if possible?
$100K means nothing to me if if was selling for $400k 5 years ago.
For example compound out at 5% over 5 or 10 years.
Lets say a house sold for $275k in 1995 so 10 years later the house should be worth
After 5 years 5% compounded $345k
After 10 years $440k That's today. Not the $700-$800k they are asking today!
I grew up in both the midwest and the south and experienced the boring, dumbed down culture and abysmal educational standards there. I'm more than willing to shell out my extra tax money to live somewhere civilized.
The south and the midwest are "uncivilized?" I'll tell you what's uncivilized. Millions upon millions of rude animals living on top of one another scraping to pay obscene taxes, fight through overcrowded highways and afford living expenses just to say they live close to NYC while BRAGGING about it! Ha, if that's what makes you happy, then keep it. But calling the South and the Midwest uncivilized without any justification is ridiculous.
"unrealtor appreciate the mls updates but can you put things into perspective and show what the house sold for in past if possible?"
A great many houses close to NY City are older, and have owners that have lived there for many years.
But hey, you're complaining about free information? :-) Plug that address into Zillow and see if anything comes up.
"$100K means nothing to me if if was selling for $400k 5 years ago."
A $100K reduction means that buyers have called this idiot on his outrageous asking price. What the house sold for 5 years ago isn't terribly relevant in 2006, unless you have a time machine.
I'd take the "uncivilized" South over the smell of rotting garbage on the sidewalks of Hoboken, while your patio overlooks a gas station parking lot, any day.
Only a snob would dismiss half the country as "uncivilized."
Civilization extends far past the borders of our fine state. In fact, civilization extends far past the borders of our own country. There is a whole world out there. And let me tell you, there are a whole lot of very nice places to live.
grim
Union City property taxes rose up to 26% last year.
http://query.nytimes.com/gst/fullpage.html?res=9503E3DD1431F932A25751C0A9679C8B63
Nuff said! I can't even buy in a bad town in Hudson County anymore!
"Only a snob would dismiss half the country as "uncivilized.""
NASCAR, illiteracy, fundamentalist Christianity and pork rinds aren't my thing. If that makes me a snob, so be it.
mmm.. pork rinds.
This is a terrible article. The state's problem started in the mid-1990s, with Whitman and her income tax cut, and the rest of that supply-side nonsense. Corzine is proposing more cuts than tax hikes, and the state's tax effort-the key measure--is on par with most of the other big states.
No point in blaming Corzine for decades of fiscal mismanagement.
"NASCAR, illiteracy, fundamentalist Christianity and pork rinds aren't my thing. If that makes me a snob, so be it."
QED
grim ghost,
just my opinion... but if this governor was serious, he would re-negiotate all union contracts... this is the real issue of the spending budget.
Given the fact that unions (and mob if you insist they are separate) run NJ this will never happen. Everybody knows that current socialist union contracts are unsustainable but there is nothing you can do..except move to a different state.
The governor can do many things, concerning new contracts with the union... he can make them pay a small percentage for healthcare benefits as well as raise the retirement age... it's happening over in NYC with the MTA... it can happen in NJ too.
I think the governor can only ask for changes in union contracts when they come up for renegotiation.
Anon 3:27,
Maybe... but, as the governor is claiming, there is a financial crisis at hand. What other excuse or possible reason does one need to renegotiate union contracts?
Anon 2:04 pm agree completely! If you ever wanna barf...go to a political dinner (fundraiser) and see the characters that make up the room...Genetic Hucksters!
Genetic Hucksters; empty suit, crumb grabbing, thieves...birds of a feather...
Pardon, their is 1 other type usually young (sometimes older, really sad)...puppies with stars in their eyes for the politician that is scamming the cash to further his/her socialist agenda.
No need to change leadership in NJ. Things are great here, maybe tax rate is too low but this can be fixed. "Bush is incompetent" so we must re-elect people from the union controlled democratic party so we can continue the good work in NJ!
Anyway, there is no way out of this misery except moving out. Even if republicans or some 3rd party get 100% of votes in NJ there is still the unelected fundamentalist mullah body (eh, I mean ultra-secular judges) overruling the decisions made by the elected officials. See Iran for further similarities.
"It takes me an hour to reach Essex county, 1.5 hours to reach NYC and about an 1.0 hour to Philly."
Wow, 3 hours a day commuting -- that's brutal if you work in NY City.
This is the kind of bias that keeps many people from leaving NJ. For some reason, many people here think that everything outside NJ is a cultural wasteland. Yes, there are areas like this, but NJ has its own bad areas too. Most people that I know who have left have been very happy with their decision.
The truth is that many fist time buyers can’t afford to get into many of the more desirable towns. So, where does that leave us? Should I struggle to live in a second or third tier NJ town or move to an affordable first-rate town in another state?
Amen to Rentinnj.
There is no deals for first time homebuyers as such as myself unless I live in a not so diserable area with high taxes. Please that is NOT what I want to do. Gheesh what's a woman to do??? (smile)
At the risk of being labeled a "flip-flopper" because of my posts on taxes elsewhere on this blog, I'm going out on a limb here by stating that I think $12,000/year property taxes in towns like Summit are obscene! I don't generally have a problem with taxes since living in the kind of community many of us want costs money (parks, roads, public services, etc.). But if you think about $12,000/year property taxes---once you pay off your mortgage, you still have to pay this $1000 per month to the city (or county or township, etc.). Under these circumstances, can a homeowner really claim to "own" their home? Or are they just renting it from the city (or county or township, etc.)?
Roadtripboy
My thoughts exactly...how about the dummies in leftywood (englewood) NJ they pay (at least on the "East Hill") in 90%+ of the assesments over $25,000 a year in property taxes, many home "owners" paying $30 -$45,000 a year with a handful paying...are you ready $100 -$240,000 a year in property taxes!!! School system ranks at bottom percentile in the state...right along with places like Camden etc. Are these people stupid or what? Yes a handful have so much money they use the excellent private schools in the area. Even if you make $1m a year in income do you really want to pay those property taxes?...year in and year out. At $400,000 income, your just getting by.
"Also, the proposed increase in the sales tax rate sounds like the echoes of the Florio administration and we all know his fate; he's the only one-term governor in NJ history."
Yes, but dont forget he was oh-so close to being reelected - just three years after the "impeach Florio" bumper stickers. Dont ever underestimate the short memories of voters. Its why taxes are always raised in the first term. Politicians count on it, and we accomodate.
"NASCAR, illiteracy, fundamentalist Christianity and pork rinds aren't my thing. If that makes me a snob, so be it."
This statement is so short sighted and ignorant, I have trouble even saying it. No at all unlike someone from the deep south saying - "gangs, drugs, traffic, overcrowding, orthodox Jews, and sushi arent my things".
Delford - the problem isn't the concept of property taxes to pay for schools, it's these ridiculous little school districts, some are so small they don't even have schools, but they still manage to have expensive administrators and supervisors.
Civilization extends far past the borders of our fine state. In fact, civilization extends far past the borders of our own country. There is a whole world out there. And let me tell you, there are a whole lot of very nice places to live.
I don't believe this. This has gone from an anti bubble blog to an anti NJ blog.
Yes, if civilization for your is best chili contests and associating with people who have not, in fact, explored civilization beyond the borders of our own country, then move to the South or to the Midwest (save Chicago).
Or if you'd like to leave the country and move to, say, France where there is a 22% unemployment rate amongst those younger than 26, that's fine too.
Otherwise, stay in NJ. There are many wealthy people in this state who can afford to live here. And with the anticipated inheritance windfall in the years ahead, they will get only wealthier.
"if civilization for your [sic] is best chili contests and associating with people who have not, in fact, explored civilization beyond the borders of our own country, then move to the South or to the Midwest"
What narrow-minded snobbery.
Being born in NY and then living in NJ for over 30 years I've had enough, selling my home and i'm moving west.
If i want NYC "culture" i'll be able to afford an airline ticket and come back.
I have heard rumors of a Corzine out of state relocation tax that would tax you on selling your home in NJ and moving out of state. Does anyone know if this is true ? Details ?
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