Governor Murphy's first six months: a move in the wrong direction (sales, 2015)
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In my opinion, Governor Phil Murphy's first seven months in office have featured the Governor being overly critical his predecessor (who I am not a huge fan of) at every turn, disagreements with the legislature despite his own party holding a majority in both houses, and public policies being implemented that will increase the cost of living in New Jersey and hurt our state's economy.
Agree with me? Disagree with me? Below are sources and articles to back up my claims.
Murphy's first seven months have included:
1. A budget filled with higher taxes and new government spending - 75% of CPAs say Murphy's budget will hurt New Jersey's economy
July 17, 2018 - 12:38 — Spencer Chretien
In the spring of 2018, New Jersey’s new governor and leaders in the legislature were arguing about which state taxes to raise. Governor Phil Murphy had pledged to soak the wealthy with a state individual income tax of 10.75 percent on all income more than $1 million, but powerful State Senate President Steve Sweeney preferred a tax increase on corporate income.
New Jersey narrowly averted a government shutdown on July 1, 2018, as Governor Murphy signed a budget compromise that will significantly increase taxes, but not to the extent that he wanted. Overall, the budget is bad news for New Jersey residents and businesses.
Additionally, Governor Murphy had wanted to increase New Jersey’s sales tax to 7 percent from 6.625 percent; that did not happen. However, the state will now collect sales taxes on online out-of-state purchases, thanks to the Supreme Court’s decision in South Dakota v. Wayfair. Thus, although the rate won’t increase, the tax will apply to more items. The math is not complicated; someone who spends $1,000 a year online will pay $66.25 more in taxes.
Another major component of state revenue, the income tax, has also been increased, but not by as much as the governor wanted. Governor Murphy wanted a higher rate on individuals earning more than $1 million; the budget agreement includes the 10.75 percent rate he sought, but on income more than $5 million.
President Sweeney got some of what he wanted, too. The budget also raises the corporate rate from 9 percent to 11.5 percent. Here, there is a $1 million income threshold.
The trifecta of tax increases on sales, individual income, and corporate income is bad enough for a state already losing residents and businesses to states with better economic environments, but the Murphy-Sweeney compromise also puts new taxes on popular innovative products: there will be a 5 percent fee on Airbnb, a 50-cent tax on each solo Uber ride and a 25-cent tax on each shared ride, and a 10-cent per milliliter tax on liquid nicotine, making it more expensive to quit smoking.
Shopping bags, both plastic and paper, perennial targets of the left, are also on the conveyor belt of new taxes: the legislature imposed a 5-cent tax, but Governor Murphy, who has line-item veto power, is still reviewing it.
The governor defended his tax increases as urgently necessary for “investment” and “obligations,” saying they will make the state “stronger and fairer.” He nakedly embraces a philosophy of bigger government and higher taxes, which will only hurt his state’s long-term economy as its government refuses to prioritize services and enact spending cuts.
It is one thing to shrug and say the tax increases might have been worse. But for ordinary residents of New Jersey, there is not much to like.
More Than 75 Percent of CPAs Say NJ’s Budget Will Hurt Economy Over Long Term
ON JUL 17, 2018
More than 75 percent of the 921 certified public accountants (CPAs) who were surveyed by the New Jersey Society of Certified Public Accountants (NJCPA) in July said that New Jersey’s 2019 state budget, which was signed by Governor Murphy on July 1, would have a negative impact on the state’s economy. Thirty-nine percent felt the economy would get “marginally worse,” and 37 percent said it would get “significantly worse.” Fourteen percent said it would have no impact, and only 10 percent said the economy would get either “marginally better” or “significantly better” under the new budget.
The budget consists of $37.4 billion in spending, to be funded in part by instituting a tax increase from 8.97 percent to 10.75 percent on taxpayer income of more than $5 million. The budget also included several significant corporate business tax changes, including a surcharge of 2.5 percent for the next two years and 1.5 percent for the subsequent two years for corporations with income of $1 million or more as well as a new combined reporting system. No change was made to the sales tax rate though a tax will be levied on e-cigarettes and short-term lodging, such as Airbnb.
NJCPA survey respondents cited several reasons why the budget plan will not help the state’s economy over the long term. Taxing millionaires could lead to more residents in high-income brackets leaving the state, said respondents. As one noted, “the outward migration of wealth will continue, and the long-term effect will be disastrous.”
2. A policy granting financial aid to the children of illegal immigrants at public colleges even as legal immigrants struggle to afford the cost of living in New Jersey
A New Jersey college student's immigration status will no longer play a factor into whether that student is eligible for certain in-state financial aid.
College students who are unauthorized immigrants in the state are already allowed to pay for their Garden State college classes at in-state rates. Former Gov. Chris Christie, a Republican, gave thousands of students who grew up in New Jersey but are in the country illegally that ability in 2013.
Now, Gov. Phil Murphy, a Democrat, took the measure a step further when he signed a bill into law Wednesday that would let some of those students be eligible for financial aid -- something Christie refused to go along with.
3. A return to a cap & trade program that will increase energy costs
Phil Murphy spent most of his first two weeks in office focused 100% on non-New Jerseyans as I’m sure you noticed, folks, rushing to a church to symbolically fight ICE and declaring his intention to spend TAXPAYER MONEY on a lawsuit in support of amnesty for so-called “dreamers.”
At the dawn of week #3?
He’s finally focusing on you and me and everyone who actually pays the bills…
By guaranteeing bigger bills?
Yup. That’s the plan! On Monday, Governor Murphy affixed his signature to an executive order which places New Jersey back into the “Regional Greenhouse Gas Initiative” or RGGI, the same cap-and-trade style program from which Chris Christie withdrew the great Garden State early in his first term. Murphy’s wife, Tammy, was recruited by none other than Al Gore as a founding member of the radical leftist environmental group The Climate Reality Project so none of this is a surprise. Doesn’t make it any less disappointing.
Now we’re back in though implementation may be a year-long process. The regional compact’s stated purpose is fighting global warming or climate change or whatever the Left is calling it this week (the preferred terminology changes almost daily). In reality, the Cato Institute crunched the numbers and found that any emissions reductions in participatory states, thus far, have been “consistent with the reduction in other states that are not members of the initiative.”
Its actual impact since establishment in 2009? MUCH higher electric bills for the citizens of participating states.
“Prices in the RGGI states were 64 percent higher than the non-RGGI states in 2015 and 54 percent higher in 2007. RGGI allowance costs added to already high regional electric bills in the RGGI states. For example, according to the study, RGGI allowances added $11 million a year to Delaware’s electric bills,” reported the Institute for Energy Research back in September 2017.
Higher electric bills with NO correlating environmental benefit relative to states with cheaper electric bills.
So the point of RGGI is….? Other than hurting middle class and struggling New Jerseyans whose ability to heat and cool their homes just got a lot more expensive following today’s executive action?
Politics, Save Jerseyans. Virtue-signaling to primary voters in distant states where Phil Murphy hopes to eventually garner support for a future presidential bid, financed by YOU and me.
At least Chris Christie primarily wasted the NJGOP’s money. No one in this state – Democrat, Republican, Independent, Martian, whatever – is safe from Phil Murphy’s ambition.
4. Preserving Obamacare's individual mandate in place in New Jersey, placing yet another burden on New Jersey's already over taxed people
The New Jersey legislature approved two big bills Thursday designed to counteract some of President Trump's changes to the Affordable Care Act and stabilize the state's individual insurance market.
Why it matters: Some ACA allies have pinned their hope on states to counteract the administration's policy moves, but there will likely only be limited effects in blue states. But if Gov. Phil Murphy approves these bills, it could give other blue states more encouragement to move forward.
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The bills: One would begin the process of seeking a federal waiver to establish a reinsurance program. The other would create an individual mandate in the state.
If Gov. Phil Murphy signs off, New Jersey would become only the second state in the country to have an individual mandate, and the first state to pass one since the federal coverage requirement was repealed.
The mandate bill would require New Jersey residents to buy coverage that meets New Jersey's standards — not the federal government's. And New Jersey already bans the sale of short-term health plans, which the Trump administration is expanding.
Together, this means that New Jersey's market would function a lot like the pre-Trump ACA.
5. A failure to renew a cap on arbitration awards, which will increase local property taxes
County and municipal officials from across the state are growing increasingly alarmed that state leaders have failed to act on renewing the 2 percent cap on binding interest arbitration awards, which has helped save over $2.9 billion in property taxpayer dollars since 2011.
Since that time, the 2 percent cap on binding interest arbitration awards has allowed local governments to live within their limited means while making sure that we take care of and protect our most vulnerable residents. In fact, the fiscal reality is that the 2 percent cap on binding interest arbitration awards has kept public safety employee salaries and wages under control simply because parties have been closer to reaching an agreement from the onset of negotiations.
Moreover, the 2 percent cap on binding interest arbitration awards has established clear parameters for negotiating reasonable successor contracts that preserves the collective bargaining process and takes into consideration the separate and permanent 2 percent tax levy cap on overall county and municipal government spending.
Failure to permanently extend the 2 percent cap on binding interest arbitration awards will inequitably alter the collective bargaining process in favor of labor at the expense of taxpayers. In addition to raising property taxes long-term, local elected officials will have no choice but to consider imposing employee furloughs, privatizing services, freezing salaries for non-affiliated employees, and reducing or eliminating non-mandated services such as transportation for the aged and disabled, meals on wheels, mental health and addiction services, and more.
A few months ago, I went on a rant on this here forum about Governor Phil Murphy. I was immature, close-minded, and down-right rude. I was having some stress in my life at the time and went about handling it the wrong way.
In my opinion, Governor Phil Murphy's first seven months in office have featured the Governor being overly critical his predecessor (who I am not a huge fan of) at every turn, disagreements with the legislature despite his own party holding a majority in both houses, and public policies being implemented that will increase the cost of living in New Jersey and hurt our state's economy.
Agree with me? Disagree with me? Below are sources and articles to back up my claims.
Murphy's first seven months have included:
1. A budget filled with higher taxes and new government spending - 75% of CPAs say Murphy's budget will hurt New Jersey's economy
2. A policy granting financial aid to the children of illegal immigrants at public colleges even as legal immigrants struggle to afford the cost of living in New Jersey
About #4 - IMO: Unless NJ creates its own independent health insurance plans not dependent of the US Government, Murphy and the dems are out of their minds otherwise President Trump's lifting of the mandate starting in 2019 IS THE LAW like it or not. This is another money grab and they know it!
I'm talking about policy issues here, that apology had to do with me calling Murphy supporters dumb which was wrong and I still feel bad about it. But I don't see why we can't have a civilized discussion based on our views as it relates to policy.
Quote:
Originally Posted by atgss
About #4 - IMO: Unless NJ creates its own independent health insurance plans not dependent of the US Government, Murphy and the dems are out of their minds otherwise President Trump's lifting of the mandate starting in 2019 IS THE LAW like it or not. This is another money grab and they know it!
Interesting point. I actually think repealing the individual mandate at the federal level without repealing other provisions of the law was a mistake because now, health insurance costs will increase because while younger and healthier people will leave the insurance market, insurance companies know businesses still have a mandate to purchase their product and will therefore be able to excessively increase costs. By mandating that individuals purchase health insurance, Murphy is forcing people to buy a product that will likely be more expensive in the coming years.
Quote:
Originally Posted by Dangerous-Boy
i honestly have not noticed a difference between him and christie.
I'm talking about policy issues here, that apology had to do with me calling Murphy supporters dumb which was wrong and I still feel bad about it. But I don't see why we can't have a civilized discussion based on our views as it relates to policy.
Interesting point. I actually think repealing the individual mandate at the federal level without repealing other provisions of the law was a mistake because now, health insurance costs will increase because while younger and healthier people will leave the insurance market, insurance companies know businesses still have a mandate to purchase their product and will therefore be able to excessively increase costs. By mandating that individuals purchase health insurance, Murphy is forcing people to buy a product that will likely be more expensive in the coming years.
Agreed.
IMO: If the US Congress actually did their job, maybe this BS here in NJ wouldn't be happening. OH WAIT I'm expecting NJ dems to be logical and caring not to tax the people more. I expect more and more BS from this NJ Government administration in the coming weeks, months and years and it won't get any better.
If it's an additional money grab one is "going to hear it" unless that one is well off and hear that as noise.
This is the way it is here in NJ between the well off and the ones actually struggling (spoke to one the other day in NNJ) who don't want more money grabs from the state.
What do you disagree with? Instead of complaining, perhaps you could engage in a respectful debate. Up to you.
Quote:
Originally Posted by atgss
IMO: If the US Congress actually did their job, maybe this BS here in NJ wouldn't be happening. OH WAIT I'm expecting NJ dems to be logical and caring not to tax the people more. I expect more and more BS from this NJ Government administration in the coming weeks, months and years and it won't get any better.
Unfortunately, New Jersey has had poor leadership for some time. In my view, 98% of what Governor Murphy has done so far will make our state less affordable, our economy worse, and do nothing to improve our credit rating and overall fiscal health.
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minds otherwise President Trump's lifting of the mandate starting in 2019 IS THE LAW like it or not. This is another money grab and they know it!
