All: time to leave nj asap (health insurance, attorney, bankrupt)
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The rational for increasing the gas tax is supposed to be to offset an increase in property tax and or corp tax. The gas tax being the second lowest in the nation benefits only drivers who pass though NJ full up and keep going about their business. An increase in gas tax is not meant to also keep increasing property taxes. In a perfect world you'd increase the gas tax and lower property tax to ease the pain of property owners. NJ gas tax is way below the national average and I'm not sure what the benefits of it being so low is.
Former NJ Gov Jon Corzine raised the sales tax from 6% to 7% in 2006, and offered the same rationale how it would lower property taxes to ease the pain of property owners. How did that work out for NJ?
Former NJ Gov Jon Corzine raised the sales tax from 6% to 7% in 2006, and offered the same rationale how it would lower property taxes to ease the pain of property owners. How did that work out for NJ?
Exactly. The government expands to utilize all new tax revenue, and unendingly seeks new taxes, fees, and increases to grow itself at the expense of its hosts. It is a vampire, and we willingly stick our neck out to be bitten and killed. And most of it because we are envious of others and/or want to be given what we cannot earn.
Former NJ Gov Jon Corzine raised the sales tax from 6% to 7% in 2006, and offered the same rationale how it would lower property taxes to ease the pain of property owners. How did that work out for NJ?
Yep giving more money to government is like giving more money to the Newark school system. Bad results and more cronyism.
The pension issue needs to be fixed. Its beating on a dead horse. Get creative and strike a deal to fix this problem. Do something like this:
- Move new hires to a 401k plan with a generous matching program. Up to 10% match from the state. Cut healthcare benefits for all to the standard crap most people get.
- Anyone with under 5 years of service immediately gets a check reflecting 20% of salary per year worked put into a 401k account and also qualify for the minimum 10 year pension at age 65 (provided they work at least 10 years). They immediately switch over to the 401k plan.
- Anyone with 5 to 10 years of service gets the same deal as above, but would get the pension for the amount of years they have worked, plus 5 (ie someone with 7 years of service when this took effect would be at a pension reflecting 12 years of service).
- Anyone with 10 to 15 years of service years of service qualifies for both the pension and the 401k program. However, service time towards the pension is accrued at 1/2 speed going forward (ie 2 years worked only counts as one towards the pension).
- For current employees with 15+ years of service or who are over 50, no change to the current pension system whatsoever. Not eligible for the newly created 401k program.
I think something like that could actually be accomplished. Its still a generous retirement package, but its more of a "pay as you go" kind of a deal and does not put the taxpayer on the hook for so much debt for eternity
No. The reason the public sector offers better benefits is to be competitive with the private sector in retaining talent. The public sector often cannot match on salary alone.
Quote:
Originally Posted by Marc Paolella
No match from the state, but all contributions are made pre-tax and are tax free with respect to earnings and income, and are tax free when finally distributed.
We have to stop the practice of employer responsibility for any part of retirement. The burden and benefit needs to be moved completely to the individual.
NO! How do you expect employees to have any loyalty when you tell them "*********, you're own your own!" (for everything)
Quote:
Originally Posted by Marc Paolella
Exactly. The government expands to utilize all new tax revenue, and unendingly seeks new taxes, fees, and increases to grow itself at the expense of its hosts. It is a vampire, and we willingly stick our neck out to be bitten and killed. And most of it because we are envious of others and/or want to be given what we cannot earn.
Governments do not have income. Taxes are not income.
This is macroeconomics 101. Every dollar the government gets in tax revenue comes out of the economy. New Jersey's source of income is the Federal government. The Federal government services all needs by printing U.S. dollars. You need to learn monetary policy.
This is macroeconomics 101. Every dollar the government gets in tax revenue comes out of the economy. New Jersey's source of income is the Federal government.
That is the weirdest idea I've seen in a while. Vis-a-vis monetary policy, the several states are treated no differently than any individual or corporation (other than a bank). The money NJ gets comes from the various taxpayers who pay it, as most people would expect; the only money that comes from the Federal government is Federal grants and other Federal payments.
I love living in New Jersey. It's a highly underated and misunderstood state, but I agree its sort of crazy in terms of the taxes we pay vs what we get in return.
I'm in a unique situation since I have no children or desire to purchase a home here. Im going to work here and make and save as much money as I can and then retire elsewhere. Unless my lifestyle drastically changes I cant foresee myself investing in property here. I purchased a home in Vegas during the bubble and still have a bad taste in my mouth regarding home ownership.
With that said, I do feel for the younger struggling families purchasing homes here in New Jersey. You just dont get much for your money. Supply and demand I suppose. My co-worker settled for a long communte from Tom's River to Moonachie each day in order to get a townhouse he felt comfortable in with the wife and two kids. He just could not find anything in North Jersey to justify. It seems like unless you are very wealthy, Jersey is not the most comfortable place to settle. Another guy I work with drives from the Poconos every day to Moonachie! Crazy crazy. I'd rather pay more to live close than spend hours in the car each day, but I dont have the spouce and kids to worry about.
No. The reason the public sector offers better benefits is to be competitive with the private sector in retaining talent. The public sector often cannot match on salary alone.
I recognize this, but it is an unsustainable system so concessions need to be made. State sponsored pensions obviously can not be managed correctly therefore they should be done away with over the long term. 10% 401k match is a great deal for employees and considerably more then even "good" employers offer.
The state needs to move to a system where at year end, it has paid out every owed to its employees. Even if it means paying more in the short term They can not manage a pension system.
The pension plan is not unsustainable. Making up 20 years of missed payments and the investment returns those funds earned is the problem.
If those payments were made in the year they were due the pension cost for every teacher and state worker was anywhere from 1 to 2% of the State budget. If you include the local education budgets the cost of pensions is significantly less than 1% of the taxes someone pays in NJ for a teacher and state worker. Even if you move to a 401k type plan there will be a cost that will be met by taxes.
I posted this before- in one of the early years the pension payment was to be $150 million dollars from a budget of $15 billion. To make up that missed payment now the State needs to make a payment of $900 million. That is because the fund averaged 8.83% over that time frame so that is how much the $150 million would have grown.
People get 10k or more a month in pension?!?! What for!
They voted themselves large pensions that are not sustainable. Several states are in this predicament as their politicians passed favorable pensions for votes. This is a train wreck in the making. If you're a taxpaying resident of NJ, you have to hope the Feds bail you out because there is going to be a big train wreck on the horizon...either pensions don't get paid or you're going to be taxed into the poorhouse. Buena Suerte.
I set next to a guy on a plane who is from Jersey recently and he told me his property taxes are $12K per year....mine are $3500. From his description of his house, it seems comparable to mine.
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